Should I combine my pensions into one pot?
If you have more than one pension, there can be pros and cons if you're planning to combine them into one pot.
Key points
- Combining pensions can simplify management and give a clearer view of total retirement savings.
- Consolidation may reduce charges but could mean losing existing guarantees or protected benefits.
- Old pensions can be traced through government services, employers, or provider find and combine tools.
- Financial advice may be worth considering for defined benefit pensions or complex retirement situations.
Most people will move jobs a few times during their work life. That can mean multiple pensions to keep track of and maybe even losing track of money you've saved for the future. One option is to bring them together into one retirement pot.
This article isn’t meant to give advice or a personal recommendation. It's simply to get you thinking about your options. Pension investments can go down as well as up and you may get back less than has been paid in.
Is it better to combine my pensions?
Combining your pensions, often called pension consolidation, means bringing several pension pots together into one. Some people may start thinking about this after changing jobs a few times, when small pots build up with different providers and it could become harder to keep track of everything. Having multiple pensions can mean more paperwork, different investment approaches, and less clarity about what your retirement savings look like overall. Bringing your pensions together may feel like a practical way to simplify your retirement savings and get a clearer view of your money.
Whether it’s better to combine your pensions, however, isn’t a one size fits all approach. It depends on your personal circumstances and, importantly, the features of each pension you already have. Some pensions are straightforward defined contribution plans, where the value depends on how much has been paid in and how investments perform. Others may include valuable guarantees, protected benefits, or promises about income in retirement. These features can be difficult or impossible to replace once you give them up.
In this video, Ellie Mole, Propositions Manager at Aviva, explains what to consider when deciding whether to combine your pensions.
Should I combine my pensions? | The Pensions Manual
Transcript for video Should I combine my pensions? | The Pensions Manual
Pensions here, there, and everywhere. Combining them could take some of the admin out of managing your retirement savings, and it might be easier than you think. This is the pensions manual.
In this episode, we'll be answering the question many of you are asking. Should I combine my pensions?
Today's objective, explore the benefits of combining pensions, learn how to find your current pensions, and discuss the things to consider before you transfer into one pot.
Step one, combining pensions. Most of us change jobs a few times in life. Often this means multiple pensions. Easy to lose track of, even easier to forget about. A simple fix? Bring them together into one pot.
Step two, understand the benefits of combining pensions. More convenience. One pension is easier to manage. Less admin, fewer login, and fewer people to update for things like a change of address. Greater control. Bringing pensions together can give you more say over how your money is invested. More flexibility. Combining pensions can potentially lead to greater flexibility at retirement. Older pension plans can be limited. Newer plans like a SIPP often have more investment choices or you can buy ready-made options within a SIPP and pick additional investments on top of this. Just remember the value of pensions can go down as well as up. So you could get back less than has been paid in. There's no guarantee you'll be any better off by transferring. Easier to track. When everything is in one place, it's easier to see how your retirement money is shaping up. Check if you're on track towards your savings goal or should start putting away a bit more. Seeing where your money is invested, how it's performing, and making changes has never been easier. Potentially lower costs. Some older pensions have higher charges. Transferring to a modern plan could mean lower admin and fund management fees. Better yet, the more you invest, the less some providers charge.
Step three, check before you combine. Check for exit fees. Look for this information in your pension documents or ask your existing provider or a financial adviser for help. Compare charges. A quick comparison of charges can help you decide if transferring is right for you. It helps you avoid surprises and move your money with confidence. Check what benefits your current pension offers with your current provider. Some will include safeguarded benefits like guaranteed income or guaranteed annuity rates which can give you guaranteed income for life. Check the value. If your pension includes safeguarded benefits and is worth more than £30,000, you must get financial advice before moving it, which you may have to pay for. Some schemes will refuse to accept any transfers of safeguarded benefits or require you to take advice before transferring whatever they're worth. Other valuable benefits such as a higher than normal tax-free cash entitlement or life cover will be lost on transfer. So, it's important to learn what you might give up before you transfer.
Step four, find your pensions. If you're sold on combining your pensions, first thing you need to do is track down all of the pensions you have. You could use a pension tracing service. The government has its own service or you can use Avivas. It's called Find and Combine. It's free to use. There's no obligation and you don't even need to be an Aviva customer. Aviva contact your previous employers or pension provider for you and share the results. Alternatively, check for documents from previous employers, old pay slips, annual statements. You could contact the HR team or the pension administrator. You can also check how much state pension you might be able to claim based on your national insurance record. You can do this online or by calling the future pension centre.
Now you know the right steps to combine your pensions with confidence and the benefits it can bring afterwards. Find out more at aviva.co.uk and watch the rest of the pensions manual series to keep learning.
This video is part of The Pensions Manual. Whether you're watching a full video or a single chapter, you can start wherever suits you.
Benefits of combining pensions
Bringing your pensions together could make managing your retirement savings simpler. Instead of keeping track of several providers, statements and log ins, you can see everything in one place, giving you a clearer picture of how much you’ve saved overall. This can make it easier to stay organised and feel more confident about planning for retirement.
Combining pensions may also help with costs. Some older or smaller pension pots can have higher charges, so moving them into a single plan could reduce the total fees you pay. Having your savings together can also give you clearer oversight of how your money is invested, making it easier to understand whether your investments still suit your goals and attitude to risk.
Limitations of combining pensions
Combining pensions isn’t always the right move, and it’s important to understand what you could be giving up. Some pensions come with valuable guarantees or protected benefits, such as a promised level of income in retirement or special terms around tax‑free cash. If you transfer these pensions, those features are usually lost and can’t be replaced, which could leave you worse off in the long run.
There may also be costs to think about. Some providers charge exit fees for transferring out, which can reduce the amount you move into your new pension. In other cases, the new pension might have higher charges or more limited investment options than the one you’re leaving. Taking time to compare what you have now with what you’re moving to can help you avoid unexpected downsides.
How can I find my old pensions?
Over time, it’s easy to lose track of pensions from previous jobs. There are a few different ways you can try to locate them.
Use a pension tracing service
There are different pension tracing services that can help track down your retirement money. The government has its own service, too.
Our Find and Combine service is free to use with no obligation. You don’t even have to be our customer.
Simply give us a few bits of personal information and any pension details you have, and we'll try to contact your previous employers for you. We'll then put together an online results dashboard or report on the findings. What you decide to do with this information is then up to you.
Other ways to find pensions
You can see if you have any information from your old employer who might have details about your old pension, like old payslips or annual benefit statements. If you can’t find anything, get in touch with your previous employer’s HR department or pension administrator. They should be able to give you information about the pension scheme you were enrolled in.
You can also check your National Insurance record through the government’s website or by contacting HMRC. It may have information on any pensions you’ve paid into.
How can I combine my pensions?
Combining your pensions usually means transferring one or more existing pension pots into a single plan. The first step is gathering some basic details about the pensions you already have, such as who they’re with and roughly how much they’re worth. From there, you can check whether each pension can be transferred and whether there are any features you should think carefully about giving up.
Before you go ahead, it’s worth checking the terms of each pension carefully. Some pensions come with guarantees or protected benefits that may be lost if you move them, and some providers may charge an exit fee. Timing can matter too, as investment values can go up or down while a transfer is in progress.
If everything stacks up, the transfer itself is usually handled for you once you’ve applied, with your new provider contacting the existing ones and arranging for the money to be moved into one pot. For a step‑by‑step breakdown of how pension transfers work, check out our dedicated guide on how to transfer your pension, which goes into more detail.
When should I consider pension advice?
You don’t always need financial advice to combine your pensions, but there are times when it can be a sensible step. This is especially true if one or more of your pensions comes with guarantees or protected benefits. These might include a promised income in retirement, a guaranteed annuity rate, or special terms around tax‑free cash. If these benefits are lost when you transfer, it could have a long‑term impact on your retirement income.
It’s also worth considering advice if you have a defined benefit (final salary) pension. These pensions work differently from most modern workplace pensions and usually provide a guaranteed income for life. Transferring one is a big decision and isn’t right for most people, so getting expert help can give you extra reassurance. And if you have a pension that contains safeguarded benefits with a value of over £30,000, it's a legal requirement that you seek regulated financial advice.
Large pension pots, multiple pensions with different features, or plans to retire soon can all add complexity too. In these situations, a regulated financial adviser can help you understand your options, weigh up the pros and cons, and check whether combining your pensions fits your wider retirement plans.
A regulated adviser can look at your personal financial circumstances and give recommendations tailored to you. If you don't have a financial adviser then you can find one through MoneyHelper, there will be a fee for advice.
Related articles
Transfer your pensions
Moving your pensions into one pot may make them easier to manage – and could even mean lower fees. Capital at risk. Remember to check for any loss of benefits and exit fees. If you're still unsure, we recommend that you get financial advice first. For some pensions you must take advice before you transfer – there’ll be a charge for this.