What to do with the multiple policies in your pension plan?

What to do with the multiple policies in your pension plan?

multiple policies in pension plan

It’s becoming increasingly rare for an individual to remain in the same job for the duration of their career. Because of this, a growing number of people are possessing multiple policies in their pension plan. The accumulation of a new pension policy from each job can become difficult to keep track of. Aegon cited that one in five people have lost track of some of their pension savings.

The introduction of auto-enrolment pensions are a large contributor towards individuals acquiring multiple policies. Legislation has made it compulsory for employers to automatically enrol their workers into a pension scheme. The number of small pension pots within an individual’s plan have increased significantly because of this. The Department for Work & Pensions say that the number of people in workplace pension schemes has already surpassed the five million mark.

If you are in a similar situation, with a handful of policies in your pension plan – you have two options. You can either; keep your policies separate, or you can consolidate them into one plan. Aegon revealed that 67% of people would prefer to combine their multiple pension policies.

Both options have their pros and cons, and can vary massively depending on circumstances. We would advise speaking with an independent financial advisor, who will be able to recommend the best course of action for you take.

Making the right choice can make the difference in a higher income pension, or even an earlier retirement date. So it is essential that you are clued up and are sure you’re making the right decision. The best option will contrast from one person to the next, because of the different rules, guarantees and rights associated with each pension policy.

The convenience of having all of your pension policies under one roof allows you a peace of mind. You know that you won’t have to rack your brains to think about where your remaining policy is. However, downsides can include loss of employer contributions, bonus eligibility and you could be hit with an exit penalty.

Each person will face their own factors with their pension plan. Speak with a financial advisor to find a solution that best suits you. If you think that you may have some outstanding assets in a pension policy, Monimine allows you to search for them for free. Start your search today at monimine.com.

Josh Cousens – Monimine.

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Have you lost unclaimed funds through your pension pot?

Have you lost unclaimed funds through your pension pot?

unclaimed funds in a pension pot

Retirement traditionally marks the end of employment, and it should be the time to take a load off, without stress. After 40 years at work, the last thing you want to be worried about is unclaimed funds in your pension pot. But almost 5.5 million pension records are waiting to be claimed!

At an estimated £400 million in unclaimed pensions savings, it accounts for one the largest contributors of lost assets.  

So why is this cash going missing?

The most common problem is when an individual is unable to inform their pension provider of their new address. If the provider is unable to contact the policy holder via their address, money can quickly slip through the cracks and become forgotten about. The financial institution will then class these customers as missing, or ‘gone away.’

Many people struggle adjusting to a lower income after work, so it’s vital to safeguard your pensions. If you’re not enjoying your full pension benefits, you may be forced into an arduous retirement, rather than a comfortable one.

Statistics published by Equiniti revealed that the average person will have at least six jobs in their lifetime. When an individual leaves one job for another, it can be easy to forget to notify your pension provider of your new company. Many people even take out a new pension and completely forget about the old one. If the provider is unable to contact you and you have forgotten about them, it is very simple for owed money to become trapped and left unclaimed.

Things became more complicated when companies began to move their pensions over to financial institutions, opposed to storing them in-house. The combination of businesses and financial companies make it a much more complex process to get your money back.

Although unlikely, your company may not have even told you that you were paying into a company pension scheme!

Our advice would be to ensure that you’re on top of all your pension policies, guaranteeing that they have all your relevant contact details and employment histories.

However … not enough is being done by pension providers to track individuals with outstanding policies.

If you think that you might have a sum of outstanding money owed to you through a pension scheme. Monimine allow you to search for unclaimed assets for FREE. Simply enter your details into the registration, and if your information matches with the data we have collated from UK financial institutions, we can help you to reconnect with your money.  www.monimine.com

Josh Cousens – Monimine