Got a pension question?
- Our help is impartial and free to use. Get in touch online or call us on 0800 011 3797

Bringing your pension pots together when you retire

If you’ve built up two or more pension pots during your working life, it might be easier to combine them when you retire. It might give you a better deal if you do.

Why you might want to bring your pension pots together when you retire

If you’ve had more than one job during your working life, it’s likely that you’ve paid into more than one pension.

If you’ve got several different pots, it might be worth combining them before you start drawing money from them.

Or you might choose different options for each pot.

arrow icon
arrow icon

Leaving your pension pot untouched

If you’ve built up various pensions over the years, it can be difficult to keep track of how they’re performing.

It can be easier to review their investment performance if you bring your pension pots together.

Your current providers might have a limited range of investment options. Moving your pot to a different arrangement might give you a wider choice of investments.

You might be able to reduce the charges you pay on your pots if you move to another provider. 

arrow icon

Getting a guaranteed income (annuity)

Do you intend to use your pension pots to buy an annuity? Then you might get a better deal from an annuity provider if you have one large pot, rather than several small ones.

An annuity is designed to provide you with a guaranteed income in retirement.

It will also be easier for you to keep track of a single, larger annuity payment – rather than several smaller ones.

You might find that some pension pots aren’t big enough to buy an annuity. Or the rates might not be good for small amounts.

But, by combining several small pots into a larger amount, you might be able to buy an annuity.

It’s important not to bring a pension pot that includes a guaranteed annuity rate together with other pots if the offered annuity rate is high. This is because the guaranteed annuity rate could be lost if you combine pots.

Setting up flexible retirement income (pension drawdown)

Similarly, if you intend to use your pension pot to provide you with a flexible income in retirement – it’s important to compare products and charges.

Charges can be cheaper if you take money out from a single, larger pot rather than several smaller pots.

It might also be easier for you to manage if your income and investments are in a single place. It helps to deal with one provider rather than lots.

Some providers have minimum sizes. So you might find that some pots aren’t big enough for the product you want. So you might want to bring your pots together.

How to combine your pension pots

If you want to bring your pensions together in one place:

  • Find out if your pensions have any special features or safeguarded benefits that you could lose if you move your pension to a new provider. And check if there are any charges you’ll need to pay to move them.
  • Compare the different services and charges of each of your existing pension providers. And compare these with others, to make sure you’re getting the best deal.

There are many things to think about before transferring or combining pensions.

arrow icon
arrow icon
Was this information useful?
Thank you for your feedback.
We’re always trying to improve our website and services, and your feedback helps us understand how we’re doing.
Looking for us? Now, we’re MoneyHelper

MoneyHelper is the new, easy way to get clear, free,
impartial help for all your money and pension choices.
Whatever your circumstances or plans, move forward with MoneyHelper.

Continue to website
Looking for us? Now, we’re MoneyHelper

MoneyHelper is the new, easy way to get clear, free,
impartial help for all your money and pension choices.
Whatever your circumstances or plans, move forward with MoneyHelper.

Continue to website
Looking for us? Now, we’re MoneyHelper

MoneyHelper is the new, easy way to get clear, free,
impartial help for all your money and pension choices.
Whatever your circumstances or plans, move forward with MoneyHelper.

Continue to website
Talk to us live for…
Talk to us live for…
Talk to us live for pensions guidance using…
Talk to us live for money guidance using…
Hours
  • Mon – Fri:9.00am – 5.00pm
  • Sat, Sun and bank holidays:Closed

* Calls are free. We’re committed to providing you with a quality service, so calls may be recorded or monitored for training purposes and to help us develop our services.

Talk to us live for money guidance using the telephone
Hours
  • Mon – Fri:8.00am – 6.00pm
  • Sat, Sun and bank holidays:Closed

* Calls are free. We’re committed to providing you with a quality service, so calls may be recorded or monitored for training purposes and to help us develop our services.

Talk to us live for pensions guidance using web chat
Hours
  • Mon – Fri:9.00am – 6.00pm
  • Sat, Sun and bank holidays:Closed
Talk to us live for money guidance using webchat
Hours
  • Mon – Fri:8.00am – 6.00pm
  • Sat:8.00am – 3.00pm
  • Sun and bank holidays:Closed
Talk to us for pensions guidance using our web form

We aim to respond within 5 working days

Talk to us for money guidance using our web form

We aim to respond within 2 working days

Talk to us live for money guidance using WhatsApp

Download app: WhatsApp

For help sorting out your debts or credit questions. For everything else please contact us via Webchat or telephone.