With this generation, it’s very rare to join a company at 18 and stay there until retirement. Us Millennials and Gen-Z employees are much more prone to switching jobs every few years or so to get the most out of each role and progress as efficiently as possible. With that, it means that we’re likely to have a different pension with each new role that we start which can quickly get confusing. We know that many young people may not have pensions at the forefront of their minds, but it can be really important to understand them now, so that life can be easier later on. 

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The good news is that if you entered the workforce after 2012 and you were at least 22 at that time, then you would have been automatically enrolled in a workplace pension. So, you may already have some money aside without even realising. On the other hand if you’ve switched jobs since then (once, or a few times!), you will most likely have a few pension schemes. 

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So, what’s next?

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1. Get Your Information Together

That means making a record of every pension scheme that you are a part of and from which company. You should have received information from each pension provider, either by post or email at least once a year with an ‘Annual Statement’. This document just summarises how much you have in your pension and if you have invested your money, how it is performing. If you do not have copies of these, then it may be best to contact your current and previous employers (the HR department) to find out the details. 

The government also has a free pensions tracing service that you can use to locate any unclaimed or forgotten pensions that you may have.

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2. Combine or Track Your Pensions?

Next up, decide whether to combine all of your pensions and then, choose which single pension pot to opt for. There are many benefits to combining pensions including making it much easier to manage your money, having the convenience of everything in one place and potentially saving money if you go with a lower-cost scheme. If you are not sure what is best to do, then it could be a good idea to talk to your pension provider or even a financial advisor if you need support making the right decision for your circumstances. 

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Platforms like Pension Bee allow you to combine all of your existing pensions in one place as well as locate any missing pensions that you may have.

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If you decide to combine, then it is a case of contacting whichever provider you have chosen and having the discussion to merge all of your pension pots. You will need the details of each one to do this and it is not an instant process, it can take a couple of months. When starting a new job, you may have the option to combine your pensions at the beginning when you are introduced to their scheme. 

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Figuring out your pension now and what it means for you can be incredibly beneficial for your future. If you are in this situation and a bit overwhelmed, don’t panic. Get organised, find out all the details, do your research and speak to someone that can advise you if you are still unsure. 

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