The Benefits of UK Pension Consolidation

UK Pension Consolidation

Holding pensions with multiple schemes can be an administrative nightmare. This blog explores some of the benefits of pension consolidation.

Historically people’s careers would often consist of working in just one or two roles within the same company or public sector organisation. In terms of retirement planning, this norm simplified matters significantly, as pension savings were held by one or perhaps two schemes.

Times have changed!

Just by simply clicking on someone’s LinkedIn, it’s not difficult to observe that people’s careers are often now far more transient, with many people working at multiple organisations before their 30th birthday. The average person now will hold 11 jobs in their career, with that number continuously rising.

The result of this trend:  Many people holding pension savings with multiple schemes.

Issues associated with holding multiple schemes


Being a member of multiple schemes means one thing, paperwork. When you come to eventually drawing down from your pension, the last thing you want is to have to hunt all over the house to take benefit from your various pension pots.

There is an estimated 37bn in unclaimed UK pensions; it is believed a significant portion of this figure comes as a result of people losing track of their various pension pots.

Being a member of multiple schemes may also complicate matters when it comes to declaring your taxable earnings.

By consolidating your pensions into one pot, the process of drawing down is simplified. The money simply transfers from one account to another.


A further issue associated with being a member of multiple schemes is fees. Each scheme you are a member of will charge ongoing fees to hold and invest your money. Charges are likely to have a disproportionate impact on your smaller pots assuming the scheme charges a fixed annual fee.

By consolidating your pensions into one pot, you will pay just one ongoing fee. Many SIPP providers will offer clients better deals based on the size of their portfolio. deVere strive to provide our clients with access to only the most competitive options on the market.

Portfolio management

For your portfolio to have the best chance of achieving positive results your pension needs to be well-positioned. Having multiple pension pots means you are less likely to be reactive to market movements and opportunities.

Older schemes may be limited or inflexible in the range of funds offered.

Consolidation will make portfolio management significantly easier. Moreover, you are likely to have a greater number of investment options available to you.

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Having multiple different pots can make it a difficult task when you are trying to work out how much you have saved. This could result in you inadvertently reaching retirement with insufficient savings.

By consolidating your pensions into a SIPP you will be able to clearly see how far you are from reaching your retirement goal.


Holding multiple pensions can be an administrative hassle. It can lead to; you paying higher charges than necessary, achieving lower growth than what is possible and having to jump through many more hoops to access your capital.

If you would like to learn more about pension consolidation, please click here.

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