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Consolidate to boost pension funds, says L&G

Consolidating pension pots with one provider could boost a client&#39s overall fund, says Legal & General.

The life office says advisers should consider switching clients to lower-charging products because many providers charge existing clients at pre-stakeholder levels.

L&G says even existing clients with the benefit of stakeholder-friendly charges should consider switching where the new charge structure is a flat 1 per cent throughout the life of the policy, offering no tiering of charges as the fund grows.

The provider is also calling on IFAs to review clients whose funds are in closed books.

It says clients should be warned of the potential for future poor fund performance. Another reason to consider a switch is where the provider is no longer financially strong.

L&G has recently enhanced its online pension transfer value analysis system to make it easier to assess whether it is worthwhile transferring.

Director of pensions marketing Andy Agar says: “With the technology now available to financial advisers on pension transfers, it takes just minutes for them to assess whether a client could benefit from transferring their pension pots and consolidating them with one provider.

“We believe the combination of our financial strength, tiered single-charge product and extensive fund choice, with both internally and externally managed funds, make L&G a natural choice for IFAs looking to consolidate their clients&#39 pension pots.”

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