Why Reviewing Your Old Work Pensions Is One of the Smartest Financial Moves You Can Make

If you’ve recently moved into contracting, one of the biggest financial questions you might be asking is: “What should I do with my pension?” Reviewing your pension when you move to contracting is one of the smartest financial decisions you can make. Those forgotten pots could be doing far more for you. And taking control of them now can have a serious impact on your long term wealth and retirement flexibility. A phrase I often use with my clients is ‘it’s your money, be involved’

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If you’ve recently started contracting, one of the biggest financial questions you might be asking is: “What should I do with my pension?”

And reviewing your pension when you move into contracting is one of the smartest financial decisions you can make.

Or even if you have moved jobs over the years, chances are you’ve left one or multiple old workplace pensions behind you. They sit there quietly, untouched, unmanaged and often underperforming.

Those forgotten pots could be doing far more for you. And taking control of them now can have a serious impact on your long‑term wealth and retirement flexibility. A phrase I often use with my clients is ‘it’s your money, be involved’

At Icon wealth we are here to help and guide you but also to help educate you to at least understand your pension.

Why Reviewing Your Old Work Pensions Is Critical When You Move to Contracting

When you leave employment, your pension does not automatically follow you.

Many contractors assume: “It’s invested — so it must be fine.”

But here’s what we typically uncover during pension reviews:

  • The funds may no longer suit your risk profile.
  • Charges could be higher than necessary.
  • Performance may fall behind many funds that are available to you.
  • You're missing opportunities to align all your retirement assets under one strategy.
  • And most old pensions are in a ‘lifestyle strategy’ that in many scenarios don’t suit the individual.

A quick pension review with Icon Wealth Management can uncover issues or opportunities that could be worth thousands over time. Above all, you will understand your pension, your money a lot more.

You have 4 main options when it comes to your old work pension:

Leave the pension where it is

Pros

Cons

  • No immediate decision required
  • Funds remain invested as it is.
  • Charges can be competitive in large schemes.
  • You have no say in future scheme decisions
  • Fund choices may not suit your risk profile
  • Can be forgotten or poorly monitored

 

Transfer to your new pension scheme

Pros

Cons

  • Keeps everything under one roof.
  • Can create one larger, more efficient pot.
  • Simple Tracking, One investment strategy across your pension fund.
  • You’re subject to the new scheme’s rules.
  • May not allow early access at 50.
  • Less flexibility compared to a PRB or a PRSA

 

Transfer to a PRSA

Pros

Cons

  • You can combine multiple pots.
  • Ideal for contractors wanting one continuous pension structure.
  • PRSAs allow staggered retirement drawdown.
  • Risk of Over-Consolidation.
  • If combined, ability to take tax‑free lump sums from separate pots.
  • Some older scheme benefits (e.g., access age) may not transfer over.

 

 

Transfer to a Personal Retirement Bond (PRB)

Pros

Cons

  • Independence, once you do the PRB you control it not your old employer.
  • You control how it’s invested.
  • Death Benefit – It all transfer to your estate.
  • Early Access – Access from Age 50.
  • You Cannot Do Staggered or Phased Drawdown
  • Charges can be higher.
  • Death Benefit – It must go back to the trustee of the scheme before been paid.
  • You Can’t Add Future Contributions

 

Pension Advice for Contractors with Icon Accounting

At Icon Accounting and Icon Wealth Management, we work closely with contractors to ensure:

  • Your pension structure suits contracting income
  • You maximise tax efficiency
  • Old pensions are reviewed strategically
  • Retirement flexibility is built into your plan

Whether you’re asking:

  • “Can I have a pension when contracting?”
  • “What should I do with my pension when I move to contracting?”
  • “What are the best pension options for contractors?”

The answer starts with a review. Because it’s your money. Be involved.

Book a Pension Review with Icon Wealth Management today and take control of your retirement strategy.

Author
Shauna McEntee

Shauna McEntee

Marketing

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