Pension savers with multiple funds are struggling to consolidate their pension savings into a single fund, which could decrease annual fees and administration time, according to pension specialists iSIPP.
According to the poll for technology-driven pension provider iSIPP, more than one in ten or 11 per cent pension savers with numerous plans have tried and failed to consolidate funds, while nearly 38 per cent acknowledge they do not know how to consolidate pensions into one fund.
Only one-fifth of respondents polled in the iSIPP report said they have only ever had one pension fund, while another 19 per cent said they have successfully combined pension accounts in the past. More than half of those with numerous pension systems have not attempted to merge them.
Younger savers are more likely to have merged their funds successfully — and more likely to have attempted and failed. Around 26 per cent of under-35s have successfully combined their pensions, whereas 13 per cent have failed. Only 17 per cent of over-55s have combined their assets, while 5 per cent have attempted but failed.
Customers can use iSIPP to merge their previous pensions and funds into one pot, choose their preferred investment funds, and track their performance online 24 hours a day, 7 days a week, with total transparency on fees and charges. Through its increasing ‘Create’ service, an option geared for those who wish to make their own investment selections for SIPPs, iSIPP offers a wide range of fund choices and flexibility for UK and international consumers looking to consolidate their pension funds.
Investors have access to risk ratings and asset allocation information through iSIPP’s ‘Create’ option, which covers funds classified as standard assets under FCA criteria. Through their iSIPP account, investors have flexible access to the investment platform.
The service is free to set up and has no dealing or fund transfer fees, allowing clients to build their own portfolios to supplement its current Ready-Made Funds from world-leading investment managers BlackRock and Schroders.
iSIPP managing director Hrishi Kulkarni says: “It is worrying that so many people have tried to consolidate their funds and failed and that so many don’t know how to do it.
“Funds available within the iSIPP ‘Create’ option provide clients more choice, control, and flexibility over their pension investments and crucially the service is easy to use.
“Consolidating all existing pensions into iSIPP will provide them single online pension account, simple and transparent fee to pay and full oversight of investment performance helping them to make more informed decisions moving forward suited to their own financial situation and retirement goals.”
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