Every week, we pull together the most relevant stories for your personal finances.

Summary

💼 The government wants to combine your small pension pots automatically from 2030 - what should you consider in the meantime?

💰 NS&I's fixed-rate bonds now pay up to 5.17%, and some banks are offering regular savers paying up to 6.5% - what to know before you lock your money in

🛡️ Only 18% of employees know everything their workplace benefits cover - check before you pay for your own insurance

🗣️ This week we asked a financial expert: I've got a handful of old pensions from previous jobs - what should I consider before deciding whether to combine them?

💼 The government wants to combine your small pension pots automatically from 2030

The Department for Work and Pensions (DWP) is consulting on a plan to automatically move small, forgotten workplace pension pots into your current workplace pension, with a target start date of 2030.

The DWP says there are more than 13 million workplace pots worth under £1,000, adding up to over £4bn, and around a million new ones are created every year.

🤔 What this means for you

The plan would cover pots from schemes you joined after automatic enrolment began in October 2012, held in a default fund, worth £1,000 or less, and with no contributions for at least 12 months. Around 20 million pots could be in scope by 2030. You'd be told before anything moves, and you could choose a different provider or opt out altogether. The proposals may still change after the consultation.

If you've changed jobs a few times, you may well have a small pot or two sitting in a scheme you've forgotten about. The plan only covers small pots, so larger old pensions would still be down to you to track down and combine.

Some people may choose to combine their pots before 2030 rather than wait. The possible motivations for doing so could include potentially lower fees, having a clearer view of where your money is and how it's invested. But combining isn't right for everyone, and there are several things worth considering first.

Moving out of an older scheme could mean losing a guaranteed annuity rate, built-in life cover or a low-fee fund, and some schemes charge exit fees. Some pots also have a protected pension age, which could let you access the money at 55 rather than 57 (the minimum age rises to 57 from April 2028). Very small pots may cost little to keep where they are, so the fee saving can be modest.

A sensible starting point is to find out what you have. Make a list of your old employers and which pots you hold. The government's free Pension Tracing Service can help with any you've lost track of.

‍Not sure what's in your old pensions? A Bippit financial expert can help you understand your old pots and talk through what to consider before combining them.

💰 NS&I's fixed-rate bonds rise to 5.17%, and some banks are offering regular savers paying up to 6.5%

Government-owned NS&I has raised the rates on its fixed-rate bonds, with terms from one to five years. As of 6 October, they pay 4.99% for one year, 5.07% for two years, 5.1% for three years and 5.17% for five years (all AER, up from around 4.8%).

You can put in anything from £500 to £1 million, but you can't take your money out until the term ends. Separately, some banks are offering high-interest regular saver accounts, with rates of up to 6.5% AER on a small monthly deposit.

🤔 What this means for you

These two products suit different jobs. A fixed bond is for money you already have and won't need for a while. The rates are attractive, but your money is tied up, so it's still best to keep your emergency fund somewhere you can reach it. NS&I is backed by the Government, which can matter if you're saving a large sum, and the longer terms currently pay the most.

A regular saver is for building up savings month by month. A rate of 6.5% looks high, but you only earn it on the balance you've built up so far. Saving £300 a month for a year (£3,600 in total) at 6.5% would earn about £125 in interest. A lump sum of £3,600 in a top easy-access account at around 5% would have earned roughly £54 more. Regular savers often limit how much you can pay in each month, and some are only open to existing customers or people who hold a current account with that bank.

‍Worth knowing:

Interest on both is taxable, though most people have a personal savings allowance that covers the first slice of it. Regular savers also usually move to a lower rate after the first year, so it's worth setting a reminder to move your money on.

🛡️ Only 18% of employees know everything their workplace benefits cover

Research from Group Risk Development (GRiD), reported by Which?, found that just 18% of employees whose employer offers benefits are fully aware of everything available to them.

That can include life insurance (often called death-in-service cover), income protection or enhanced sick pay, critical illness cover, and private healthcare or a health cash plan. It means some people may be paying for a personal policy that their employer already provides.

🤔 What this means for you

Before you buy or renew any personal insurance, it's worth checking what you already have through work. Look in your employment contract, staff handbook or benefits portal, and if it isn't clear, ask HR for a full list. Note down what each benefit pays out, when it starts and ends, and whether you need to sign up for it.

It also helps to check whether what you have is enough. Take death-in-service cover worth three times a £40,000 salary: that's a £120,000 payout. If you have a £180,000 mortgage, there'd still be a £60,000 gap before any other living costs. In the same way, it's worth checking how much sick pay or income protection you'd receive, when it would start, and how long it would last.

‍Not sure what your workplace benefits cover? A Bippit financial expert can help you understand what you already have through work, and whether there are any gaps.

Ask a financial expert

"I've got a handful of old pensions from previous jobs - what should I consider before deciding whether to combine them?"

It's a good question to ask, and the answer depends on what kind of pensions you have.

The government's plan is only for small pots - £1,000 or less - and it isn't due to start until 2030, with details that may still change. If your old pensions are larger than that, they wouldn't be moved automatically, so any decision about them would be yours to make.

Combining pots can make things simpler. You'd see everything in one place, and you'd stop paying any fixed fees several times over. Before moving anything, there are typically three things worth looking at for each pot: whether it has any valuable guarantees, such as a guaranteed annuity rate or life cover; whether it has a protected pension age; and whether there's a charge for leaving. Any of these can affect whether moving a pot makes sense for you.

The starting point is to find out what you have. List your past employers, contact each scheme, and use the free Pension Tracing Service for any you can't track down. Once you have the full picture, it's much easier to weigh up your options.

A Bippit financial expert can help you understand what you have and talk through what to consider for each pot.

Questions (to ask your financial expert)

I've got a few old pensions from past jobs - how do I find them all, and what should I consider before combining them?

Should I lock some of my savings into a fixed bond, or keep it all easy access?

I have my own life insurance - how do I check what my employer already covers, and whether I need both?