Should I combine pension pots from previous employment?

[DublinHead54]

Hi,

I have a few pension pots from previous employers all with Irish life (3 in total). Does it make sense and is it possible to combine them into 1 pot? Initially assumption is that I would save on some fees, and easier management, but I don't see many other benefits outside of that.

I was planning to just let them run their course and drawdown at 50 and then combine into an ARF.

Thanks

 

[TRS30]

Depends on the fees, fund selection etc on current plans. You could combine in a Buy Out bond (assuming none are PRSA's) which would be easier to manage however keeping them separate allows you to drawdown at different time, take tax-free lumps etc.

Depends on personal circumstances and mainly points above.

 

[AJAM]

Over 20 years, even small differences in fees can add up to thousands or 10's of thousands extra (or less) in you pension pot.
So the number 1 priority should always be to reduce fees. i.e. combine them into the lowest fee option.

If there is no difference in fees, the extra flexibility you gain from being able to drawdown at different times may mean you want to leave them separate.

 

[Fortune]

Over 20 years, even small differences in fees can add up to thousands or 10's of thousands extra (or less) in you pension pot.
So the number 1 priority should always be to reduce fees. i.e. combine them into the lowest fee option.

If there is no difference in fees, the extra flexibility you gain from being able to drawdown at different times may mean you want to leave them separate.

To summarise, one should have a logical reason before taking a tion on a pension. And that logical reason shouldn't be because you saw an ad on Instagram that said consolidation of pensions is great (doesn't mention that it's only great if you consolidate into a BOB that pays the advertiser a nice commission).