{"id":23116,"date":"2024-10-03T15:20:09","date_gmt":"2024-10-03T15:20:09","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/should-i-combine-my-pensions-one-pot\/"},"modified":"2026-06-26T19:14:30","modified_gmt":"2026-06-26T19:14:30","slug":"should-i-combine-my-pensions-one-pot","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/should-i-combine-my-pensions-one-pot","title":{"rendered":"Should I combine my pensions into one pot?"},"content":{"rendered":"\n

If you\u2019ve worked for several employers throughout your career, you might have accumulated multiple pension plans. You may also have set up personal pensions, especially if you\u2019ve been self-employed or a contractor at some point.<\/p>\n\n\n\n

Owning multiple pensions can be an administrative burden, but it could also be costing you financially \u2013 some of your pensions may have uncompetitive pricing structures and\/or underperforming investments, thereby reducing your overall pension pot.<\/p>\n\n\n\n

Consolidating your pensions into one pot could help you keep track of your finances<\/a> more easily, reduce charges, and boost how much money you have in the future. But while there are advantages to pension consolidation, there are potential drawbacks and it\u2019s important to seek financial advice on whether it\u2019s right for you. To help you get started, here are some of the pros and cons to consider.<\/p>\n\n\n\n

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\"Top<\/a><\/div>

A guide to saving for retirement<\/h3>
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Jam-packed with essential information on how to save for a more comfortable life after work.<\/p>\n\n\n\n

Download guide<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n<\/div><\/div><\/div><\/section>\n\n\n\n

Pension consolidation: the pros<\/h2>\n\n\n\n

Keeping on top of several pensions can be time-consuming. If you have, say, five pensions, then that\u2019s five lots of investment performance<\/a>, risk
profiles and asset allocations to monitor, five different charges to keep an eye on, and five statements to read through and understand each year. Few people have the time, know-how or even the inclination to do this accurately. For some people, therefore, transferring pensions to one provider may simply be about making their \u2018life admin\u2019 more straightforward.<\/p>\n\n\n\n

You\u2019ll also be paying the administration fees for each of your pensions, which may not be cost-effective. This is especially the case for those providers operating older charging structures, such as monthly policy fees and bid-offer spread. Fees eat into your investment returns and may ultimately reduce how much money you have at retirement<\/a>. By combining your pensions, you might be able to save on charges.<\/p>\n\n\n\n

Fees aren\u2019t everything, however, as you also need to consider the performance of each pension fund. It may be that some of your pensions have poor investment performance, and that moving to a different scheme offers better investment growth potential.<\/p>\n\n\n\n

Comparing charges and investment performance isn\u2019t easy to do on your own. We can carry out a thorough assessment of your pensions and advise on the best course of action for you.<\/p>\n\n\n\n

Pension consolidation: the cons<\/h2>\n\n\n\n

Consolidating your pensions could prove financially detrimental if it means giving up valuable benefits and guarantees. Ones to watch out for include:<\/p>\n\n\n\n