Multiple Pensions

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When I carry out financial reviews, I take a holistic look at a person’s finances — and pensions often stand out as an area needing further attention. One common issue is tracking down pensions from previous employments. Many people either don’t recall the details or have little understanding of these older pension arrangements.

That’s where I come in. I help clients locate these pensions, clarify where the policy is held, explore their current options, and understand the pros and cons of each route available to them.

Some of the key questions people ask include:

  • Should I cash it in?

  • Would it be better to move it?

  • Will I lose out by making a change?

  • Is my money safe?

Often, pensions are left sitting in old employer schemes, not out of strategy but out of uncertainty or fear of doing the wrong thing. This can be risky. People may lose track of the policy altogether, especially if their contact details change and administrators lose touch.

One major advantage of transferring your pension from a former employer’s scheme is gaining direct control. You eliminate the need to go through trustees or previous employers. In most cases, your pension can be transferred into a new arrangement or a Retirement Bond — a pension held in your own name. Depending on your circumstances, a Retirement Bond can be a smart move. It preserves the benefits you had within your employer’s scheme but places them under your personal control.

What many people don’t realise is that transferring a pension into a PRSA (Personal Retirement Savings Account) could mean losing out on valuable benefits — especially the tax-free lump sum options that many traditional occupational schemes offer but PRSAs do not. In some cases, this can significantly reduce the value available to you at retirement.

Another key benefit of Retirement Bonds is early access. If your benefits are preserved in a bond, you can typically access them from age 50. However, if you’ve combined pensions or moved them to a PRSA, you might have to wait longer to access your funds.