The Quick Answer

Consolidating can simplify your life and reduce fees, but some pensions have valuable benefits you would lose by transferring. Check before you move anything.

Reasons to Consolidate

  • Easier to manage. One pot is simpler to track than five scattered across old employers.
  • Potentially lower fees. Older workplace pensions often charge 1%+ per year. A modern Self-Invested Personal Pension can be much cheaper.
  • Clearer picture. Seeing your total retirement savings in one place makes planning much simpler.
  • Better fund choices. Older schemes may offer limited, outdated investment options.

Reasons to Be Careful

  • Guaranteed annuity rates. Some older pensions offer annuity rates far above what is available on the open market. Transferring out means losing them permanently.
  • Protected tax-free cash. Some pensions offer more than the standard 25% tax-free lump sum. Transferring can forfeit this.
  • Defined Benefit pensions. These guarantee a specific income in retirement. Never transfer out without professional financial advice.
  • Exit penalties. Some schemes charge a fee to transfer out, especially if you are within an initial period.

How to Compare

Before consolidating, compare each pension on these criteria:

  • Annual management charges (the ongoing percentage fee)
  • Fund choices and investment flexibility
  • Platform features (online access, drawdown options)
  • Exit fees and any guaranteed benefits

The Fynla Approach

Add all your pensions to Fynla to see the full picture first. Compare fees and projected outcomes side by side before deciding whether to consolidate. Sometimes the best decision is to leave things where they are.