What points should I consider before combining pensions?

pjcox2005

I've currently got two pensions, one from my old employer which I contributed to for 11 years but not since I left them to join a new firm, and one from my current employer of c.2 years which I pay into on a monthly basis with their contributions. Both pensions are managed through the same provider.



The question is what points should I be considering before combining the two? Is it just rates and their investment approach, or is there more to it? Presumably simplicity is to keep all pensions in one, particularly as this is unlikely to be last employer, or are there benefits from having lots of smaller pots. Appreciate we don't know the rules when I come to retire but would appreciate people's thoughts. Thanks

dunstonh

The question is what points should I be considering before combining the two? Is it just rates and their investment approach, or is there more to it?

Any safeguarded benefits?
Comparison in charges
Comparison in investment options
Any particular features or options that one may have that the other doesnt (i.e. one is pre internet and has no online functionality)

Presumably simplicity is to keep all pensions in one, particularly as this is unlikely to be last employer, or are there benefits from having lots of smaller pots.

10 pots of £10k each is the same as one pot of £100k. There can be benefits with consolidation (for example, if consolidating lowers your charges due to fund based discounts). However, if the end scheme is not as good as the little ones then you can end up worse off. So, you do need to compare.