Question 1

Is it a good idea to combine all my pensions?

Accepted Answer

Often, but not always. Combining pensions can reduce charges and make your savings far easier to manage. The exception is older plans with valuable features, such as a guaranteed annuity rate or a protected pension age, which are usually worth keeping. It is worth checking each plan before you transfer.

Question 2

Will I lose anything by transferring my pensions?

Accepted Answer

You could, which is why it pays to check first. Some plans apply exit penalties or hold safeguarded benefits that would be lost on transfer. A proper review weighs the charges and features of your existing plans against the plan you would move to, so you only combine where it genuinely leaves you better off.

Question 3

How much money do I need to retire comfortably?

Accepted Answer

It depends on the life you want, not on an average. The most useful place to start is your expected spending in retirement, then bring together everything that will fund it: your pensions, the State Pension, ISAs and other savings. Cash-flow planning then shows, in plain numbers, whether that income is likely to last.

Question 4

How do I know if I am on track for retirement?

Accepted Answer

By mapping your future income against your expected spending. We use cash-flow planning to project both across your whole retirement, allowing for inflation and the odd poor year for investments. It shows whether your money is likely to last and lets you test changes, such as retiring earlier, before you commit to them.

Question 5

Who gets my pension when I die?

Accepted Answer

Usually whoever you name on your pension's expression of wish or nomination form, not whoever is named in your will. Keeping that form up to date is the single most important step in making sure your pension reaches the people you intend.

Question 6

Is a pension subject to inheritance tax when I die?

Accepted Answer

Pensions have historically sat outside your estate for inheritance tax, which makes them a valuable way to pass wealth on. The rules are changing, so how your pension is treated depends on your circumstances and when you die. It is an area where up-to-date advice matters, and we are happy to talk it through.

Pension questions, answered in a few minutes.

Should I combine my pensions?

How much do I need to retire?

What happens to my pension when I die?

Let's start with a conversation.