Piggy bank

Now is a terrible time to merge your pensions

If you’re thinking about merging your pension pots – and there are some very good reasons for doing so – now is a terrible time to do it. 

This is because when you transfer one pension into another, it’s the value of your assets rather than the shares or funds you’re holding that’s transferred across.

In essence, you’re cashing out from one provider and using the money to buy new assets at another provider.

Current events mean markets are down significantly – you’ll have seen this if you do any investing – and your portfolio is likely to be making a significant loss.

If you cash out now, you’ll have far less money to spend.

At the same time, because the markets are very volatile, you may find that by the time you make the switch, prices have gone up and you’ve made an even bigger loss because you’re not able to buy as many shares or funds with your money.

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