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Tuesday, July 23, 2024

Quarter of staff unaware they will consolidate pension contributions

Quarter of staff unaware they will consolidate pension contributions

Just one in 5 staff are conscious they will consolidate their pension contributions, creating £26.6bn in misplaced funds.

Of those that haven’t consolidated, 1 / 4 of respondents to Customary Life’s survey mentioned it was all the way down to not figuring out how you can do it.

Additional, a couple of in ten (12%) are solely vaguely conscious of the choice to consolidate, whereas 21% have heard about it however not in any element – there have been solely 20% of the 6,350 surveyed who’re absolutely conscious of what pension consolidation is.

The annual retirement report coincided with Nationwide Pension Tracing Day on 29 October, which aimed to lift consciousness with staff about about what’s occurring with their pension.

It comes after YourMoney.com reported a separate examine which discovered one in 4 staff have been unaware off what was going in direction of their retirement fund – rising to a 3rd amongst 55 12 months olds.

Monitoring pension ‘not as tough as you assume’

Dean Butler, managing director at Customary Life, a part of Phoenix Group mentioned: “All through a profession it’s simple to gather a number of completely different pensions, however as they construct up it could actually turn into a lot tougher to maintain on prime of them. Life will get in the best way and once you transfer home or change jobs your pension is unlikely to be prime of your agenda and may simply be forgotten about.

“Monitoring them down will not be as tough as you assume and a very good first step is to make use of the Authorities’s Pension Tracing Service. Take into account taking the additional hour [now clocks have gone back] to start your pension tracing quest. It could present better certainty for the longer term figuring out the place all of your pensions are and the way a lot they’re value, so it could possibly be probably the most financially rewarding hour you’ll ever spend!

“The subsequent step is to determine what to do along with your numerous pensions. Consolidating them into one single pension plan can allow you to reap the benefits of much less admin and submitting, make it simpler to trace efficiency and increase your understanding of how a lot you might be saving for the longer term, in addition to doubtlessly end in you paying decrease costs. Nevertheless, it’s vital to grasp your circumstances first, and it’s value in search of steering or recommendation to ensure that is the appropriate factor for you earlier than making any choices.”

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