Reviewing your finances can be daunting, but it can be made easier by breaking the job down into smaller tasks. The first step should be to consolidate your assets. Here are five reasons why:

Ease: You should be regularly reviewing your investments to ensure they are on the right track, but if the funds are spread across many institutions it can be hard to do this effectively. Your circumstances will change over time and your attitudes to risk and disposable income will vary as you move through life, so it is important you review your pensions and other savings on a regular basis.

Achieving goals: Online tools can help investors assess how much to save to meet an desired income level in retirement. Tools can also offer guidance as to the types of assets investors should have exposure to in order to help them reach their savings targets. Online tools work best when your savings are viewed as a whole.

Diversification: By having your nest egg in one place, it is simpler to see the overall make up of your long-term savings and whether you are under or over exposed to a region, asset class or investment sector.

Cost: There may be some cost advantages to consolidating your assets. Some companies offer discounted annual management and or platform charges for large pots. It is always worth reviewing charges on pensions and other savings to see if a better deal might be available. Every pound you save is a pound that can go towards your retirement, a dream holiday or your child’s university fees.

Cash back: Earn money for making your life easier. Some fund supermarkets will reward investors who transfer investments to them, even if it is just £1. This can be a nice extra reward on top of all the other benefits of having your investments in one place. Investors should be aware that some providers may charge an exit fee, so savers should always enquire about this before transferring. If there are exit penalties, check whether the new pension provider will make a contribution towards these.