Pension consolidation: what to check before combining pensions
Combining several pensions into one can make them easier to keep track of, but it isn't right for every pension. This guide explains what to check first and where to get free, impartial help.
By Phillip Handley, Chartered Associate (LIBF), Adv DipFA
What is pension consolidation?
Pension consolidation means moving several defined contribution pensions into one plan, so your savings are in one place. It can make your pensions simpler to manage, but moving a pension can also mean losing valuable benefits, so it's worth checking each one carefully before you move it.
This page is general information to help you think it through. It isn't advice, and The Pension Transfer Specialist doesn't offer a pension consolidation service.
Why people think about combining pensions
Most people change jobs several times, and each job may have left behind a workplace pension. Over a working life, it's easy to end up with a handful of pots with different providers, and to lose track of some of them.
People often look at consolidation because they want to:
- see all their retirement savings in one place
- deal with fewer providers and less paperwork
- understand what they have before planning their retirement
- review what they are paying in charges and how their money is invested
Combining pensions can help with these, but it doesn't always reduce costs or improve results. A new plan may cost more than your existing ones, and some older pensions have features that are worth more than any saving in charges.
What to check before you move a pension
Before moving any pension, ask its provider for the details below. Write the answers down so you can compare.
Exit fees and transfer charges
Some older plans charge you to leave, or apply a reduction when you transfer. With-profits funds may apply a market value reduction, and you may lose a final or loyalty bonus. Ask what you would actually receive if you transferred today.
Ongoing charges
Compare the total yearly cost of each plan, including the plan charge, fund charges and any adviser charges, with the cost of the plan you would move to.
Guarantees, including guaranteed annuity rates
Some older personal pensions and retirement annuity contracts include a guaranteed annuity rate (GAR). This promises to turn your pot into an income at a fixed rate, which can be much higher than rates available today. Others may have a guaranteed growth rate or a guaranteed minimum pension underpin. These guarantees are usually lost if you transfer. Read about guaranteed annuity rates.
Protected tax-free cash
Some older pensions let you take more than the usual 25% as tax-free cash. This right can be lost if you transfer, unless strict conditions are met. Ask the provider whether your plan has protected tax-free cash.
Protected pension age
Some plans let you take benefits before the normal minimum pension age, which is 55 and rises to 57 on 6 April 2028. This protected pension age can be lost on a transfer, so ask whether it applies.
Safeguarded benefits
Safeguarded benefits are pension benefits that include a guarantee about the income you will get. They include defined benefit (final salary) pensions, guaranteed annuity rates and some guaranteed minimum pension underpins. If they are worth more than £30,000, you must take regulated advice before you can transfer them (see below).
Employer contributions
If you are still paying into a workplace pension, your employer is probably paying in too. Moving that pension could mean losing your employer's contributions. Many people keep their current workplace pension open and only look at older ones.
Death benefits and other features
Check whether any plan includes life cover, a guaranteed death benefit or other features you would lose, and who would receive the money if you died.
How your money would be invested
Think about the level of investment risk in each plan and in the plan you would move to. All investments can fall as well as rise in value.
Defined benefit pensions and pensions with guarantees need special care
Defined benefit pensions
A defined benefit pension is not a pot of money. It pays a guaranteed income for life, usually with yearly increases and a pension for your spouse or civil partner. Moving it into a defined contribution plan means giving up those guarantees for an invested pot.
- Advice is required by law over £30,000. If your safeguarded benefits are worth more than £30,000, you must take advice from an FCA-authorised firm with the pension transfer permission before you can transfer.
- The FCA starts from the position that a transfer is unlikely to be suitable for most people. See the FCA's guide to defined benefit pension transfers.
- A transfer cannot usually be reversed.
- Members of unfunded public-sector schemes, such as the NHS, Teachers' and Civil Service schemes, can't transfer to a defined contribution pension. Find out why.
Read more in our guides to final salary pensions and how defined benefit pension transfers work.
Pensions with a guaranteed annuity rate
A guaranteed annuity rate is also a safeguarded benefit, so the same £30,000 advice rule applies. If one of your pensions has a guaranteed annuity rate, or you're not sure, we're happy to talk it through. Phil can advise directly on pensions with guaranteed annuity rates through Arthur Browns, subject to suitability. Advice is chargeable, and we will explain our charges in writing before you agree to go ahead.
Free help from MoneyHelper and Pension Wise
You can get free, impartial help with combining pensions:
- MoneyHelper is the government-backed service for help with money and pensions. Its guides explain combining pensions and what to look out for.
- Pension Wise offers free guidance appointments on your pension options if you're 50 or over.
If you want a personal recommendation about combining your defined contribution pensions, you can find a regulated financial adviser through MoneyHelper's directory, and check any firm on the FCA Register.
Finding old pensions: the Pension Tracing Service
If you think you have lost track of a pension, the government's free Pension Tracing Service can give you contact details for a workplace or personal pension scheme. You'll need the name of the employer or pension provider. It won't tell you whether you have a pension or what it's worth, but the scheme can, once you contact it with your National Insurance number and employment dates.
Watch out for scams
Pension scammers often talk about "consolidating" or "reviewing" your pensions. Be wary of cold calls, texts or emails about your pension, offers of a "free pension review", promises of high or guaranteed returns, and pressure to act quickly. Check the FCA's ScamSmart site before dealing with any firm.
Frequently asked questions
Can I combine a final salary pension with my other pensions?
Only by transferring it out, which means giving up its guaranteed income. If your safeguarded benefits are worth more than £30,000, you must take regulated advice first, and the FCA's starting assumption is that a transfer is unlikely to be suitable.
Does combining pensions always save money?
No. It depends on the charges on your existing plans and on the plan you would move to, and on any exit fees. Some older plans have low charges or valuable guarantees.
How do I find out if my pension has a guarantee?
Look at your policy documents and latest statement, and ask your provider directly whether your plan has a guaranteed annuity rate, protected tax-free cash, a protected pension age or any other guarantee.
Important: Arthur Browns Wealth Management Ltd (FCA 825843) does not give defined benefit pension transfer advice. The FCA starts from the position that a transfer is unlikely to be suitable for most people, and a transfer cannot usually be reversed. See Important information.
Last reviewed 22 October 2026