Pension consolidation: should you combine your old pots?

A working life rarely runs in a straight line, and our pensions reflect that. A few years here, a different employer there, perhaps a personal pension started and then forgotten. It is common to reach your fifties with several pots and only a hazy idea of what they are worth.

The case for bringing them together

Combining pensions into one modern plan can bring real benefits. You may pay lower charges, which add up over time. You get a single, clear view of your savings instead of a drawer of old statements. Your money can follow one strategy that matches your goals, and when you come to draw your pension, one plan is far simpler than several.

The guarantees worth keeping

Combining is not automatically the right move, and this is where advice matters. Some older pensions carry features you would lose on transfer:

• Guaranteed annuity rates, which can pay a far higher income than today's open market.
• Protected tax-free cash above the normal entitlement.
• A protected early retirement age, allowing access sooner than usual.
• Final salary promises, which are generally best left where they are.

Give one of these up by accident and you could be thousands of pounds worse off in retirement. It is exactly the sort of detail that is easy to miss when transferring a pension yourself online.

How we approach it

We track down each of your pensions and gather the full details, including any guarantees. We compare the charges, fund choices and features against a modern plan. Then we tell you plainly which pots are worth combining and which are better left alone, and only proceed where it is in your interest.

If you have old pensions you have lost track of, gathering them up is one of the most worthwhile pieces of financial housekeeping you can do.