The average UK worker changes jobs 11 times during their career, potentially accumulating a pension pot with each employer. Many people lose track of old pensions, pay unnecessary fees on multiple small pots, and miss out on the benefits of a consolidated, well-managed retirement fund.
Why Consolidate?
| Benefit | Explanation |
|---|---|
| Simplicity | One pot, one statement, one investment strategy |
| Lower fees | Old pensions often charge 1%+ per year; modern providers charge 0.15–0.45% |
| Better investment choice | Choose from thousands of funds rather than limited default options |
| Clearer planning | See your entire pension wealth in one place |
| Easier drawdown | One provider to manage when you start taking income |
The Cost of High Fees
| Pension Pot | Annual Fee | Over 20 Years (5% growth) | Fee Difference |
|---|---|---|---|
| £50,000 | 0.25% | £125,000 | — |
| £50,000 | 0.75% | £117,000 | -£8,000 |
| £50,000 | 1.50% | £104,000 | -£21,000 |
Moving from a 1.5% fee to a 0.25% fee on a £50,000 pot saves £21,000 over 20 years.
Step 1: Find All Your Pensions
Where to Look
- Pension Tracing Service — search at gov.uk/find-pension-contact-details
- Old payslips and employment contracts — look for pension provider names
- Previous employer HR departments — ask which provider they used
- Email archives — search for “pension”, “retirement”, or provider names
- Post and paperwork — annual pension statements (may have gone to an old address)
Information to Gather
For each pension, record:
| Detail | Why You Need It |
|---|---|
| Provider name | To contact them |
| Policy/scheme number | To identify your pot |
| Current value | To assess total pension wealth |
| Type (DC/DB) | Determines transfer process |
| Charges | To compare with new provider |
| Guarantees | To check before transferring |
| Nominated beneficiaries | To update if transferring |
Step 2: Decide Whether to Transfer
Always Check Before Transferring
| Check | Action |
|---|---|
| Guaranteed annuity rates? | If yes, probably keep — these are very valuable |
| Protected tax-free cash > 25%? | If yes, probably keep — you lose the protection on transfer |
| Defined benefit pension? | If yes, seek independent financial advice before any transfer |
| Exit penalties? | Calculate whether savings outweigh the penalty |
| Employer match still active? | Keep your current workplace pension for ongoing contributions |
Good Candidates for Transfer
- Old defined contribution pensions with high fees (over 0.5%)
- Small pots that are not being actively managed
- Pensions with limited investment options
- Pots from employers you left years ago
- Any pension you have lost track of (after finding it)
Step 3: Choose a Receiving Provider
| Provider | Annual Fee | Investment Range | Best For |
|---|---|---|---|
| Vanguard | 0.15% (max £375) | Vanguard funds only | Low-cost index fund investors |
| InvestEngine | 0% (DIY) | ETFs | Fee-free ETF investing |
| AJ Bell | 0.25% | Funds, shares, ETFs | Broad choice |
| Interactive Investor | Flat £5.99–£11.99/month | Full range | Larger pots (£50k+) |
| Fidelity | 0.35% (reducing) | Wide range | Good research and tools |
For a detailed comparison, see our investment platform comparison.
Step 4: Initiate the Transfer
The process is straightforward:
- Open an account with your chosen provider (if you do not already have one)
- Start the transfer online — most providers have a dedicated transfer tool
- Provide old pension details — policy numbers, provider names
- The new provider contacts the old provider — no action needed from you
- Wait for funds to arrive — typically 2–8 weeks
- Invest the transferred funds — choose your investment strategy
During the Transfer
Your pension is typically in cash during the transfer — you are not invested. To minimise this:
- Transfer during calm market conditions when possible
- For large pots, consider transferring in stages
- Have your investment choices ready so you can invest as soon as funds arrive
Step 5: Invest and Manage
Once consolidated, choose an appropriate investment strategy:
By Age
| Age Range | Suggested Allocation |
|---|---|
| Under 40 | 80-100% equities (global index funds) |
| 40-50 | 70-90% equities, 10-30% bonds |
| 50-60 | 60-80% equities, 20-40% bonds |
| 60+ | 40-70% equities, 30-60% bonds/cash |
These are guidelines — your specific situation, risk tolerance, and other assets matter.
Key Principles
- Diversify globally — don’t concentrate in a single market
- Keep costs low — every 0.1% saved in fees compounds over decades
- Rebalance annually — bring allocations back to target
- Review your pension at least once a year
- Increase contributions when you can — read our pension contributions guide
Common Questions
Can I Consolidate Into My Current Workplace Pension?
Yes, if your scheme accepts transfers in. This can be the simplest option if fees are competitive. However, you will be limited to the scheme’s investment choices.
Should I Keep a Separate SIPP?
Many people keep their current workplace pension (for employer contributions) alongside a SIPP (for old pensions and extra contributions). This gives you the best of both worlds — employer matching plus full investment control on past savings.
What About Defined Benefit Pensions?
DB (final salary) pensions should almost never be transferred without independent financial advice. The guaranteed income is typically more valuable than the transfer value offered. See our pension transfers guide for details.