Combine Pensions for an Earlier Retirement

Combine Pensions for an Earlier Retirement

Over the last 3 years many of us have tasted what life will be like in retirement, for example not commuting into the office or factory while in lockdown. Paradoxically, while our freedoms were curtailed, working from home made us think more about future freedom from work.

And for those having to carry on relentlessly in front line and vital roles, it brought home how precious our time is. Time for ourselves, family, friends and pursuits.

It prompted many to wonder when they could retire and how to bring it forward.

Combining old pension pots is a great way of taking control of your retirement options by consolidating or merging current and old employers pensions into a single actively managed personal pension.

Here are 3 of the main reasons to consider combining old and current pensions:

1. Some of your old employers’ pensions may be invested in default funds which won’t take account of your individual attitude to risk, and may yield you poorer returns than you may be able to achieve with a more tailored approach.

2. Having a single personal pension pot gives you the option to diversify into a range of actively managed funds giving all of your savings the same potential for growth. Your pension portfolio can be constructed according to your age, risk profile, and investment objectives.

3. Accompanied by cashflow planning, a single pension will focus your attention on the amount of money you need to retire on. That is the amount you’ll need to accumulate from which to draw a sustainable income during retirement.

However, before you go ahead and start moving your pensions it is vital you seek independent financial advice from a pension specialist. There may be guarantees you may lose, or penalties which apply, if you were to move your pensions without looking into them in enough detail.

When can I draw from my personal pension?

The current age at which people can access their pension pots is 55. Though this age will rise over time to reflect increases in the state pension age. From 2028, this ‘pension freedom age’ will rise to 57.

The important question to ask is what proportion of your current income will you need in retirement to fund your chosen lifestyle – that’s where detailed income and expenditure planning comes in to predict the cashflow you’re likely to need.

If there’s one thing the last two years have taught us, it’s not to take anything for granted. We can no longer afford to put off planning our lives. And to live our lives to the full we all need to give ourselves financial options.

Whatever else you may resolve to do this new year, please make your pension a priority. Our friendly advisors are here ready to talk to you, and all our discovery meetings are without obligation or charge.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).