Today, it’s common for employees to have several pensions with different providers. When they join a new workplace, they’ll usually be automatically enrolled into their new employer’s workplace pension scheme. This means that combining pensions into one place may be something they want to consider.
Consolidating or combining pensions could make future savings easier to manage. Multiple pension pots could mean paying multiple charges. Combining pensions into one pot means one set of charges – making it easier for your employees to see what charges they’re paying and potentially saving them money.
Before combining pensions, your employees should check if any of their pensions have protections, guarantees, or bonuses that would be lost if they were moved. Some pensions also charge an exit fee for transferring out.
Combining may not be the right decision for everyone and it’s recommended people get guidance or financial advice before transferring. We offer a free guidance service through Aegon Assist. Our Aegon Assist team is on hand to help your employees consider their pension options, although they don’t give financial advice.
You can also show your employees our Combining your pensions guide to help them decide if it’s right for them.
Have your employees lost any pensions?
Direct them to the Pension Tracing Service. It’s a free service provided by the government which searches a database of more than 200,000 pension schemes to try and find the contact details they need.