3rd April 2017

The days when people began their careers with one employer and stayed there until they retired are long gone. It’s estimated that depending on where you live, people now have an average of between six and 11 different jobs during their careers. This can mean that over the years they end up with pension entitlements in several schemes with different providers.

In certain circumstances, it can make good financial sense to consolidate your pension into one new plan. This means you can manage all your retirement savings in one place, reducing the paperwork and administration. You might be able to save money on fees and choose funds that are better suited to your investment outlook and attitude to risk.

However, there are circumstances where this might not be in your best interests. If you are in a public sector pension scheme, such as the nurses’ or teachers’ schemes, then the benefits they offer can be hard to replicate elsewhere. Or, if you have saved into an employer final salary scheme, you may find that it offers guaranteed retirement income or guaranteed annuity rates, valuable benefits that you would lose if you moved it elsewhere. You may be charged exit fees too.

If you are lucky enough to be currently contributing to a final salary scheme, it’s worth finding out if your employer will allow past contributions from other pensions to be moved into their scheme.

If you move jobs, you may be able to consolidate your previous pensions into your new employer’s scheme. You should think carefully before doing so; you will need to be sure that the benefits offered are as good as those in any scheme that you contemplate leaving.


Taking professional advice will help you weigh up your options and make the right choice for your financial circumstances. Your adviser will be able to help you understand the costs, benefits and risks involved in moving any of your pension pots.

The information within the article is purely for information purposes only and does not constitute individual advice.