The days of one job for life are long gone, and with them the single pension. Most people now reach their forties with a scattering of small pension pots left behind at old employers — half-forgotten, rarely checked, and easy to lose track of. Bringing them together can help, but it pays to look before you leap.
Why consolidate
- Simplicity — one pot to monitor instead of five, with one login and one statement.
- Lower fees — old schemes can be expensive; moving to a cheaper modern one can save you over the years.
- Better choice — a modern platform may offer cheaper, broader funds.
- Not losing pots — forgotten pensions are a genuine problem; consolidating keeps them in view.
The crucial checks before you move
Some older pensions carry valuable features you would lose by transferring, and these can be worth far more than the convenience of tidying up. Watch for:
- Guaranteed annuity rates — promising a generous income that today's market cannot match.
- Defined benefit (final salary) pensions — usually best left exactly where they are.
- Exit penalties — charges for leaving an old scheme.
How to do it safely
Track down old pots using your paperwork or the government's pension tracing service. Check each one for the valuable features above before moving it. For larger or defined benefit pensions, regulated advice is sensible — and sometimes legally required.
The takeaway
Consolidation can cut fees and clutter, but it is not automatically right. Tidy up the simple, modern pots if it lowers costs — but never give up a guaranteed benefit just to have everything in one place. Check first, then combine.