Pensions & retirement
Should I combine my pensions
4 mins read
by
Ryan Mellor
Last updated 22 September, 2026
Combining pensions means moving 2 or more pension pots into 1 plan, so they are easier to track.
Many people build up pots with different jobs over the years, which is often when the question should I combine my pensions comes up. Bringing them together can cut charges and paperwork, and it gives a clear view of your total savings before you choose how to take an income.
Table of contents
Summary: Should I combine my pensions
- A guide to when combining pensions helps, when to be cautious, and how to decide.
Should I combine my pensions?
Most people who ask this have several pots and no clear idea what each one holds. One well run pot is easier to check each year and adjust as retirement gets closer.
This is also a good time for a full review, checking the charges, fees, and performance of each pot. Whatever you consolidate into should match the best of your old pensions, and ideally beat it on charges.
Combining is about more than merging pots, since it is also a chance to review your risk profile at this stage of life. At Regulated Advice, we notice that many people come to us for this kind of review around 5 years before they retire.
When combining pensions makes sense
Should I combine my pensions? It tends to work well when your pensions are simple personal or workplace plans with no valuable guarantees attached.
It also helps if your old plans charge more than a modern plan would.
Having everything in one place makes it easier to set up an income drawdown plan, or to take your tax-free cash a year at a time rather than all at once. It is also easier to manage your investments when all your funds sit under one plan.
When you should be cautious
Some older pensions come with guaranteed annuity rates, guaranteed growth, or valuable life cover, and these are lost if you transfer. Final salary pensions almost always need a formal valuation and specialist advice first.
Case study 1
Aged 58, has personal pensions of £470,000 with Aviva and Scottish Widows and would like to know what his income options will be when he retires and whether the pensions are in the best place possible. His wife, 58 also has a personal pension of £80,000 which she would like reviewed.
Both pots here are personal pensions, not defined benefit schemes, so no guarantees are at risk from a review. An advisor would check the charges and performance of each plan, then compare the income options at retirement before deciding whether to combine them. His wife's £80,000 pot is worth the same check, since a small pot can still carry high charges.
Case study 2
Age 56, he has two ex company pension schemes with Prudential and Scottish Widows. Value £79,000 and £19,000. He also has a current workplace scheme with People's Pension, value £30,000. He wants to take the 25% TFC from all 3 pensions and have the pensions reviewed and consolidated.
One of these 3 pots is a current workplace pension, so a review would first check whether that scheme still suits him before any consolidation goes ahead. The right approach here is to consolidate the pots first, then take the tax-free cash from the combined pots.The options are to take all the tax-free cash at once, or to take it out in tranches over several years, which can reduce the tax paid along the way. This may suit smaller pot sizes, such as this one.
Case study 3
Aged 54, has personal pensions of £86,000 with Aviva, Re-Assure, and St James's Place, and would like to review the schemes, discuss possible consolidation and what income options will be available. She also has an active company scheme. Her and her husband also have £60,000 in liquid and accessible savings that they would like reviewed.
With 3 personal pensions and an active company scheme, a review would check charges and fund choice across all 4 before recommending which to combine. The £60,000 in savings falls outside pensions altogether, so an advisor would look at that alongside the pensions as part of the couple's wider financial planning.
How to decide if you should combine your pensions
Start by listing every pension you hold, its provider, its value, and any guarantees attached. A regulated advisor can then check for exit fees and compare charges before you decide whether to combine them.
In short, should I combine my pensions comes down to checking for guarantees and exit fees first, and getting specialist advice for any final salary pension.
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Ryan Mellor
Gibraltar
Ryan is a co-founder of RMT Group Limited and its consumer brand, Regulated Advice. He also writes content for this site. Ryan set up the Financial Advisor Direct brand in 2013, followed by Regulated Advice in 2016, building both into trusted routes for connecting the public with regulated financial advice. Between them, the two websites have connected over 70,000 people with financial advice, including more than 9,000 face-to-face appointments with regulated advisors.
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