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Brits becoming consolidation nation

18th July 2014 Print

The secret to an easier life and feeling in control could rest with consolidation, research from Standard Life by YouGov has found. More than half (55%) of British adults are now combining services and accounts.
 
A third of us have brought energy bills (33%) together and almost a fifth (19%) have pooled together TV, phone and broadband packages. Almost two fifths (39%) have consolidated to make it easier to keep track of costs, and a quarter  (25%) have done so to benefit from less paperwork and admin.
 
But the consolidation trend hasn’t yet taken off in all areas. Just 9% have combined their car insurances and just 3% have combined mobile phone contracts to make use of mobile phone family tariffs. Similarly, just 3% have consolidated their pensions, despite the fact that over two fifths of people (43%) with a pension have more than one.
 
Julie Hutchison, Personal Finance Expert at Standard Life comments: “There certainly seems to be a consolidation trend, with many people making life simpler by tidying up all their different contracts and services. The recent launch of ‘quad-play packages’, which combine mobile, home phone, broadband and TV, are just one example of this bundling trend. Combining services can often be the smart thing to do when it comes to value and convenience. If we’re dealing with fewer suppliers we have less to keep track of, so we feel more in control. It’s also becoming much easier to bring things together, even pensions, although few people are making the most of pension consolidation opportunities. This trend might change because of the reforms in the Budget announced earlier this year, giving people even more reason to consider tidying up their pension arrangements. Our research shows that many of us have more than one pension and almost two thirds (63%) of us with pensions don’t know their total value. Tidying up different pensions could make life simpler and provide a clearer view too.”
 
The most popular products and services Brits consolidate:

33% have combined energy bills (gas and electricity)
21% have combined insurance (home and contents insurance)
19% have combined TV, phone and broadband
14% have combined phone and broadband (excluding TV)
9% have combined car insurance policies
8% have combined bank accounts
3% have combined pensions
3% have combined mobile phone contracts to family tariffs
 
Five tips from Standard Life to help with pension planning:

1. Create a list of all your pension plans and check you receive an annual pension statement from them. Millions of pounds worth of pension funds is going untraced as a result of people losing contact with their pension. The Government provides a free pension tracker service here which allows you to find lost pensions using your national insurance number.

2. Make contact with each provider to check the value of your pension and find out what it is likely to provide at retirement. This will help you assess whether your plans are on track.

3. Consider consolidating your pensions into one pot to make it easier to keep track of them.  Before giving up valuable benefits such as  guarantees or enhanced tax-free cash, it’s important to speak to an expert to get information on your own situation, as you may want to keep these.

4. Make sure your money is invested in the funds that reflect your attitude to risk. Keep this under review particularly as you get closer to the time you plan to retire.

5. See if you can view your pension savings online – that way you can keep track and see how your pension is doing more easily, so you feel more in control.