How do I consolidate my pensions?

Can I transfer my pension?

For most people with standard defined contribution (DC) pensions the answer will be ‘yes’. But if you have a defined benefit pension it’s not usually in your best interest to transfer and you’ll need specialist financial advice to make it happen. So your first step will be making sure you know what type of pension you’ve got.

And of course you’ll need a pension to transfer into! If you have one of our personal pensions or workplace pensions, just log into your online account to check out your pension transfer options and get things going.

Should I transfer my pension? 

If you’re looking to combine one or more DC pensions, there are a few things you should check before you ask for a transfer. We’ve summarised them in our Should I transfer my pensions article.

As long as there are no special benefits in the pension you are thinking of transferring, you don’t have to take financial advice before transferring. But a financial adviser can give you extra peace of mind. They can also do the hard work of comparing your pensions and making sure that transferring is the right choice for you.

Is it easy to start a pension transfer? 

The short answer is yes, it should be! Most pension providers will now let you ask for a pension transfer online, though a few providers will still need you to fill out paper forms. To get started you’ll need the name of the pension provider you’re transferring from, and your pension’s policy or account number.

How long does it take to transfer a pension?

It should take two to five weeks to transfer your pension. That’s if:

• You have all the details of your old pension pot or pots.
• Your old pension provider has up-to-date personal details for you.

If you’ve recently moved house or changed any other personal details over the last few years, you might not have updated your old pension provider. If they don’t have that new information, that could delay your transfer or mean you have to fill out extra forms later on.

How much does it cost to transfer a pension?

Most pension providers will not charge you a fee for transferring in or out. But your ongoing pension charges might change. How much they are will depend on the provider, the type of pension you have and the value of your pension pot.

We always suggest you check the charges of the pension you are transferring to. Sometimes moving from a low-cost Workplace pension, where your employer has negotiated a significant discount, to a personal pension or SIPP can lead to you paying higher charges. This can impact the overall value of your pension as it grows. That’s something well worth looking out for.

What should I do next?

Visit our pension consolidation page or login to get started. You should only go ahead with the consolidation if you’re completely sure that it’s the best choice for you.

Most people consolidate their pensions to reduce fees, simplify management and invest more efficiently. If you’re looking to consolidate DC pensions, our independent financial advisers can check whether consolidation genuinely leaves you better off - financially, and any guarantees you may lose. That comes as part of our fixed price pension advice offer, which also includes: 

• If you’re still saving for your retirement, checks on how your pension’s invested and whether you’re saving enough into it
• If you’ve reached retirement age and want to start taking money out of your pension, help choosing the best way of doing that

It costs £1,495, which you can usually pay directly from your pension. You can also find advisers on the Unbiased website.

If you’re looking to consolidate DB pensions, you’ll need an adviser who specialises in them. If you don’t already have one, again we recommend visiting Unbiased.