Should I consolidate my pensions?

April 21, 2026

Many people reach mid-career and realise they’ve accumulated several different pension pots from past jobs. It’s a natural result of a modern working life — we change employers more often, move home more frequently, and pension companies merge or change their names! The result is that millions of people now hold multiple pensions and, according to the Pensions Policy Institute’s (PPI) 2024 analysis, an estimated £31 billion of UK pension savings has gone unclaimed because people simply lose track of them.

(The PPI defines lost pension pots as those managed by a pension provider who is unable to contact the owner of the pot – either because they haven’t heard from them in a while, or because they have discovered that the contact details they hold are out of date.)

This leads to a common question: should I consolidate my pensions? The answer is not necessarily straightforward, as it depends on your circumstances, the types of pensions you have, and what you’d like your retirement income to look like.

Why people consider combining their pensions

Having several pension pots can make it harder to understand your total retirement savings, track how each one is performing, and plan your future with confidence, so consolidating them into one place can offer several advantages:

• Simpler management — you deal with one provider, one statement, and one investment strategy.
• Clearer retirement planning — it’s easier to see whether you’re on track.
• Potentially lower fees — there can be economies of scale from combining several pots to make a larger one.
• More control — modern pension plans can offer more flexibility when it comes to drawing the money out.

For many people, consolidation is a practical way to bring order to their finances and feel more in control of their long-term retirement planning.

What is pension consolidation? 

Pension consolidation involves transferring two or more defined contribution (DC) pension pots into a single plan. This might mean:

• Moving old workplace pensions into your current employer’s scheme, or
• Transferring everything into a new personal pension

The outcome should make your retirement savings easier to manage and potentially more cost-effective but consolidation is not always the right choice, and it’s important to get professional advice from an Independent Financial Adviser (IFA) before taking action. 

When pension consolidation may be a good idea

You might benefit from combining your pensions if:

• You have several small pots from previous jobs
• You’ve lost track of old pensions and want everything in one place
• Your existing schemes have high annual charges
• You want a wider range of investment options
• You’re thinking about taking a lump sum or regular income

If you’re unsure whether you’ve lost a pension, the UK government’s Pension Tracing Service can help you find old schemes you may have forgotten about.

When you should not consolidate your pensions

Some pensions come with valuable benefits that are lost if you transfer away.  There are several important points to consider before consolidating:

• Guaranteed annuity rates — older pensions may offer guaranteed income levels that are far higher than prevailing annuity rates today.
• Enhanced death benefits — some schemes provide better protection for your family.
• Low existing charges — your current plan may already be cheaper than the one you’re considering.
• Access restrictions — transferring could make it harder to access your money early.
• Exit fees — some providers charge to transfer out.

Understanding the details of each pot is crucial before you make decisions about consolidating. This is where the advice of a Talis IFA can help. They can help you to understand the different aspects of your existing pension pots, and explain the pros and cons of consolidating them. Remember that these will depend on your particular circumstances – what is appropriate for one person may not be the best option for another. So tailored advice could save you from expensive mistakes.

What to do if you have multiple pensions

If you’re unsure where to start, talk to a Talis IFA, who will guide you through the following steps:

1. Locate all your pensions — including any you may have forgotten. You can use the Pension Tracing Service, or your Talis IFA can guide you through the process.
2. Check the type of each pension — defined contribution vs. defined benefit. Your IFA will explain what these mean if you’re unsure.
3. Compare fees, benefits and investment options — older doesn’t always mean worse. Again, your IFA will talk you through the different aspects of your current pots and potential future investments, and provide tailored advice based on your needs.
4. Assess whether consolidation aligns with your retirement goals — simplicity, flexibility, cost, and control.

Because every pension has its own rules, charges and benefits, this comparison can be complex — and mistakes can be costly.

How Talis IFA can help

Talis IFA provides independent, whole-of-market pension advice to help you make the right decision for your future. 

Your Talis IFA will review each of your pension pots, explain the benefits and drawbacks of transferring, and recommend the most appropriate approach to meeting your long-term goals. If keeping your pensions separate is the best option, they’ll tell you. If consolidation could save you money, simplify your planning or improve your retirement outcomes, they’ll guide you through the process with clarity and transparency about any costs involved (including their fees).

Working with your IFA will give you confidence and a clear plan for managing your pensions — so your retirement savings work harder for you, and you feel more secure in your financial future.

Find a Talis IFA here.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.