Managing your pension pots from multiple jobs
Gone are the days when you chose not just your trade or career when you left school but stayed with the same employer for practically the whole of your working life.
As many as a third of all professionals, said the Telegraph newspaper in an article on the 11th of September 2018, are expected to hold at least 10 different posts with various employers throughout their career.
The average person changes jobs between ten and fifteen times, according to estimates by The Balance Careers – with the average number of job changes being 12 times.
Occupational pensions automatic enrolment
Throughout the changes of jobs in your working life, you may have contributed to a number of occupational pension schemes.
With the government’s introduction of universal automatic enrolment in workplace pension schemes beginning in October 2012, even more employees are going to find that they have multiple pension pots from the various occupational schemes to which they and their employers have contributed during the course of their working lives.
Keeping track of your pension savings
As the number of occupational pension schemes to which you might have contributed multiplies, you are likely to face two key problems:
- simply keeping track of those to which you have contributed during your working life; and
- deciding whether any particular pension investment fund is performing as well as might be expected.
To help address the first of those concerns, a project called the Pensions Dashboard (which we reported on recently) is designed to show you everything you have ever saved in a pension scheme – including every final salary scheme (Defined Benefits pension schemes), investment-based schemes (Defined Contributions schemes) and the State Pension to which you are entitled. The so-called dashboard will search millions of pension schemes to find all of yours and present the details of each one, all in the same place.
Having everything in one place and available online at a moment’s notice is clearly likely to prove a godsend – the problem is that it is unlikely to be up and running until at least 2019, according to the latest information provided by the project.
The dashboard is also designed to provide you the contact details of every pension scheme in which you have participated.
How are your pension funds performing?
On the second question – the performance of the many pension funds in which you are likely to have invested – simply being able to trace the schemes is not enough.
For a rigorous and impartial assessment of the performance of your collective pension pots, you are likely to need expert, independent and professional financial advice on the whole of your pension arrangements from experts such as ourselves here at Independent Pension Specialists.
Our commitment is to working with you to make the very most of all of the pension arrangements you have put in place over the years. Through a rigorous approach to careful financial planning, we aim to give you the peace of mind that the whole of your pensions pot – however diverse its sources – continues to deliver the retirement you deserve.
We take into account the fact that pensions have grown ever more complex and cut through the huge array of confusing choices and options to ensure that your savings are performing as well as possible in an increasingly competitive market.
As with all of our advice, the figures and data informing the contents of this article are correct at the time of writing.