According to Richmond Financial Advice, a working life can leave you with several pension pots from different employers and providers.

The company said: "As retirement approaches, it is natural to wonder whether combining them into one place would make life simpler.

"Pension consolidation can sometimes reduce administration and make it easier to see your overall position. But moving a pension is not automatically the right decision."

Why do people consider consolidating pensions?

Richmond Financial Advice said: "The practical appeal is clear. Fewer providers can mean fewer statements, fewer online accounts and a simpler overview of how much you have saved.

"It may also make retirement planning easier if you can see charges, investments and income options more clearly."

What should you check before transferring?

Richmond Financial Advice said: "The important question is what you might give up by moving an existing pension.

"Some pensions can include valuable guarantees, protected benefits, particular retirement ages or other features that may not be available after a transfer. "Charges and investment options can also differ.

"That means the decision should be based on the details of each pension rather than on the number of pension pots alone."

Does consolidation improve retirement planning?

Richmond Financial Advice said: "It can make the administration of a retirement plan simpler, but consolidation and retirement planning are not the same thing.

"A useful retirement plan still needs to consider expected spending, other savings and investments, tax, the timing of retirement and how income might be taken over time."

When might advice be useful?

Richmond Financial Advice said: "If you are unsure about guarantees, transfer consequences, investment choices or how different pensions fit into your wider retirement plan, regulated financial advice can provide a personalised recommendation based on your circumstances.

"Free guidance is also available through MoneyHelper and Pension Wise for eligible people who want to understand general pension and retirement options."

Pension and retirement planning around Richmond

Richmond Financial Advice Ltd works with clients across Richmond, Teddington, Twickenham and South West London on pensions and retirement planning.

You can find out more about Richmond Financial Advice's retirement planning service via its website here.

The company said: "The aim should not be to combine pensions simply for the sake of having fewer accounts. It is to understand whether a change improves your overall position without giving up something valuable.

"Pension transfers can involve the loss of valuable benefits and the appropriate course depends on individual circumstances."

Richmond Financial Advice Ltd is an Appointed Representative of ValidPath Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 197107).

This article is for general information only and does not constitute personal financial advice.

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