Guide · Pensions
Should you consolidate your pensions?
Combining pensions can make administration simpler, but moving a pension can also mean giving up features that are difficult or impossible to replace.
Why people consolidate pensions
Potential reasons include simplifying several pots, accessing different investment or retirement options and reducing some provider charges.
What could be lost?
MoneyHelper warns that transferring can mean giving up valuable features or benefits offered by the existing pension. Examples can include guarantees or other scheme-specific terms.
What should you check first?
Pension typeUnderstand whether each pension is defined contribution or defined benefit and what rules apply.
GuaranteesCheck for guaranteed annuity rates or other valuable benefits.
ChargesCompare current and proposed costs rather than assuming consolidation is cheaper.
Retirement optionsMake sure the destination offers the way you want to take benefits later.
When might advice help?
A regulated adviser can assess whether a transfer or consolidation is suitable, recommend an appropriate destination where relevant and help identify warning signs or scams.
Sources & further reading