Combining old pensions: when it helps and what to check first
Most people now leave a pension behind with each job. Bringing them together can cut charges and make retirement planning simpler, but some older pensions carry guarantees that are lost for good if they are moved.
By Vince De Stefano, Head of Financial Services
Updated 26 October 2026
4 min read
Key takeaways
- Combining pensions can reduce charges, simplify investment choices and make retirement income easier to manage.
- Check every pension for guaranteed annuity rates, protected tax-free cash, a protected pension age and exit charges before moving it.
- Transferring a defined benefit pension worth more than £30,000 requires regulated advice by law.
- The government's Pension Tracing Service can help find pensions you have lost touch with.
Why people combine pensions
- Charges. Older pensions sometimes carry higher annual charges than modern schemes. Over 20 years, a difference of half a percent a year makes a noticeable difference to the fund.
- Investment choice. Some older schemes have a narrow range of funds. One pension can be invested to a single plan that matches your risk and timescale.
- Retirement options. Not every scheme offers flexible drawdown. Moving to one that does gives more choice over how to take your income.
- Simplicity for you and your executors. Fewer schemes mean fewer statements, fewer beneficiary nominations to keep up to date and fewer valuations when an estate is administered.
What to check before moving a pension
- Guaranteed annuity rates. Some older policies promise an annuity rate far higher than anything available today. This is often the most valuable feature and is lost on transfer. If the guarantee is worth more than £30,000, regulated advice is required before transferring.
- Protected tax-free cash. Some schemes allow more than 25% to be taken tax-free. The extra may be lost if you transfer, unless the move qualifies to keep it.
- Protected pension age. Some members can draw their pension before 55, or keep access at 55 after the minimum age rises to 57 in April 2028. This can be lost on an individual transfer.
- Exit charges and bonuses. With-profits policies can apply a market value reduction or lose a terminal bonus.
- Employer contributions. Never move a pension that your current employer is still paying into without checking whether contributions would stop.
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Defined benefit pensions
Final salary and career average pensions pay a guaranteed income for life, usually rising with inflation and with a pension for a surviving spouse. Giving that up for a transfer value is rarely in a member's interest. If the transfer value is more than £30,000, the law requires you to take advice from a firm authorised by the FCA to advise on pension transfers before the scheme will release the money. The same applies to other pensions with guaranteed benefits worth more than £30,000.
Finding lost pensions
If you have lost track of an old workplace or personal pension, the government's free Pension Tracing Service can give you contact details for the scheme. You will need the employer's name and roughly when you worked there. Once you have found a scheme, ask for a current statement and the scheme's transfer information before deciding anything.
We review each pension's charges, guarantees and options and only recommend a transfer where it is in your best interests. Where a guarantee is worth more than any saving, we recommend leaving that pension where it is.
Frequently asked questions
Should I combine all my old pensions?
Often, but not always. Check each one for guarantees, protected tax-free cash, a protected pension age and exit charges first.
Can I transfer a final salary pension?
Yes, but if the transfer value is over £30,000 you must take regulated advice first, and giving up a guaranteed income is rarely in your interest.
How do I find an old pension?
Use the government's free Pension Tracing Service with the employer's name and the dates you worked there.
Does combining pensions affect my tax-free cash?
It can. Some older schemes allow more than 25% tax-free, and that extra can be lost on transfer.
Sources & further reading
The value of investments and the income from them can fall as well as rise, and you may get back less than you invest. Tax treatment depends on your circumstances and may change.
This article is general information, not advice. Tax, financial and legal rules change and their effect depends on your circumstances. Check the current position and take professional advice before acting. Last reviewed 26 October 2026. Totus One Limited (company no. 16855798).
An independent financial planner advising individuals and families on pensions, investments, protection and inheritance.
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