Consolidating pensions seems straightforward, as you are simply combining everything into one pot to make life easier. Many pension apps promise this with a few taps, but is it always the right move? Without financial advice, you might be trading a solid pension for a weaker one.
The convenience of an app doesn’t replace the depth of a financial adviser’s analysis, so before you transfer, you need to know what you’re giving up.
WHAT ARE YOU REALLY TRANSFERRING?
Not all pensions are equal. Some come with benefits you lose if you transfer, such as loyalty bonuses, profit bonuses, and even a lower retirement age. Apps focus on centralising your funds, but they don’t dig into the fine print.
A financial adviser does. They look at your current scheme and the one you’re moving to, checking if the switch actually benefits you so they can provide you with expert pension advice tailored to your unique circumstances.
HIDDEN COSTS AND PENALTIES
Transferring can come with penalties, and they’re not always obvious. Some schemes charge exit fees that eat into your savings. Others offer perks that disappear if you leave. If your pension has a protected minimum retirement age, transferring could mean waiting years longer to access your money.
A financial adviser catches these issues. An app might not.
THE DIFFERENCE BETWEEN AN APP AND AN ADVISER
Apps are built for efficiency, not personalisation. They’re designed to pull everything into one place, not to assess whether you’re making a sound financial decision. They don’t weigh long-term consequences or warn you about what you’re losing.
A financial adviser looks beyond the numbers on a screen. They ask the right questions, analyse your current pension terms, and make sure you’re not walking into a bad deal.
SHOULD YOU CONSOLIDATE?
Consolidation isn’t always wrong. If your pensions are scattered across old employers with no real benefits, combining them might make sense. But it’s not a decision to take lightly. The best move depends on your specific pensions, your retirement plans, and the details hidden in the fine print. An adviser ensures you make an informed choice.
Think of a pension app as a tool, whereas a financial adviser is a guide through a complex issue. If you’re thinking about pension consolidation, then the key question isn’t just whether or not it will be easier, but whether or not it will be legitimately better.
Before moving your pension, it is vital that you fully understand what you might lose in doing so. A financial adviser will make sure that what looks like a smart move today won’t be a costly mistake later.
If you want to learn more about pension consolidation and how a financial adviser can benefit you, get in touch with Integritas Financial Planners today.
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