Do you recommend combining different pension schemes?

Debbiewhitchurch

Hi all,

After a bit of advice, I have around 6 different pensions where I have auto enrolled throughout different jobs and just wondering if it’s recommended to combine these into my current employers pension?

Dox

If these are all defined contribution personal pensions, there's merit in only needing to keep track of one or two pension schemes. Even so, if you keep the relevant information, that needn't be a top consideration. You can transfer them at pretty much any point before you start to draw your benefit from the scheme(s) concerned.

If your current scheme accepts transfers in, and the charges are cheaper than those of your earlier schemes, there it could be worth considering. Ditto if previous schemes only offer a very limited fund choice and your current scheme offers more choice.

dunstonh

Do you recommend combining different pension schemes?

When it is suitable, I do.
When it is not suitable, I do not.

kidmugsy

I combined several little pensions together into one SIPP. I thought that as I got older I'd find it much easier to keep track of one. I made sure that there were no advantages I was giving up.

Mind you, until you are old you're not likely to find keeping track of two, or even three, much of a challenge. And it may be that having more than one will give you a bit of protection against fraud, theft, incompetence, IT calamities, or whatnot.

OldMusicGuy

I consolidated six pensions into a single SIPP for ease of management and because the SIPP offered greater investment choices and more flexibility in drawdown. It cost nothing and I did it all myself.

However, consolidating pensions doesn't necessarily mean they will do any better and you might even increase the costs of your pensions. To decide if it's right for you, you need to first understand the existing pensions. What are the charges and investment choices like? Do they offer flexible drawdown? Are there any guaranteed benefits you would lose if you transferred them? Once you understand all of that, you can then decide if it makes sense to move them.