Why Combining Your Pensions Could Boost Your Retirement Savings
Juggling multiple pension pots from different jobs? You’re not alone. Bringing them together in one place can cut through the confusion, reduce costs, and help you take better control of your retirement planning—all while potentially growing your savings faster.
If you’ve changed jobs over the years, chances are you’ve built up pension savings in several different places. Bringing them together can not only simplify your financial life, but could also give your retirement pot a valuable boost.
Here are five key benefits of combining your pensions:
Easier to manage
Having all your pension savings in one place makes it much simpler to keep track of your total retirement fund and understand what it might give you in retirement. This clarity can help you make more informed decisions—like increasing your contributions—which could result in a larger pot over time.
Less paperwork
One account means fewer statements, fewer providers to deal with, and only one login to remember. It also makes it quicker and easier to find the information you need—like how much of your pension allowances you’ve used—giving you back valuable time and peace of mind.
Lower charges
Older pension schemes often carry higher charges. By transferring to a plan with lower, more transparent fees, more of your money stays invested—potentially increasing your long-term returns. Choosing a provider that offers good value for the services you actually need can make a significant difference over time. We negotiate with investment platforms for all of our clients to ensure they get the best deal available.
Greater investment choice
Transferring your pensions into a SIPP (Self-Invested Personal Pension) usually gives you access to a much wider range of investments, which can be tailored to your goals—particularly useful as you approach retirement.
Workplace pensions often invest your money in a standard ‘default fund’, which may not reflect your preferences. Some even switch your investments automatically based on age, which might not align with your plans.
More flexibility at retirement
With a SIPP, you get full access to the main retirement options—unlike some providers that offer limited choices. You don’t need to access your entire pot at once; you can keep your pension invested and tailor your withdrawals to suit your needs. This flexibility can help make your income in retirement more tax-efficient.
A SIPP can also give you more control over who inherits your pension when you pass away.
A few things to consider:
Our free pension-finding service checks for any valuable guarantees or benefits as part of the transfer process, but if you’re combining pensions yourself, watch out for the following:
- It’s usually not advisable to transfer out of a defined benefit or final salary scheme.
- Some older pensions offer valuable features like guaranteed annuity rates or enhanced tax-free cash. These are often lost on transfer.
- Exit fees are rare nowadays, but it’s still worth checking if your provider charges any penalties or applies market value adjustments when transferring out.
Will is an Independent Financial Adviser with over a decade of experience helping expats make the most of their international status.