Pension funds offer Britons a way to save enough money to live comfortably on in retirement.
The state pension is a fund that Britons pay into during their lives by paying national insurance contributions, and they can claim it after reaching state retirement age.
Private pensions, on the other hand, are provided to Britons by their employers via various schemes.
Is it possible to combine your pensions into one pot, and is this wise?
Pension news: Should I consolidate my UK private pension fund?
You can combine your old private pensions from different providers, which could make it easier to keep track of them all.
There are various providers who claim to be able to consolidate your pensions, such as PensionBee.Should you combine your pensions?
According to Which.co.uk: “If a 35-year-old with a £10,000 pension pot invests until 65 in a fund that achieves fiver per cent annual investment growth, but charges two per cent a year, the pot will be worth £23,720.
The same £10,000 invested in a fund that achieves seven per cent annual investment growth, with a 1.5 per cent annual charge, will be worth £48,541 – more than double.”
So clearly where you invest is important, and moving your pensions into a consolidated pot with better returns could make a big difference.
Pension news: Should I consolidate my UK private pension fund? (Image: GETTY)
Pension news: Various providers claim