You should be very careful when moving old pensions just in case, as you say they come with additional benefits in case you lose them. You will need to talk to a professional advisor beforehand. You also need to consider if moving to a cheaper pension provider will compensate for any exit fees you need to pay.
Alex Pugh, Chartered Financial Planner, Partner at Saltus gave this advice:
Consolidating pensions can offer benefits such as reduced paperwork, increased income flexibility, reduced fees, a wider range of investments, and it’s easier to ensure your investments are aligned with your goals. Usually, simplicity is best. However, defined benefit schemes are valuable. Transferring these are high-risk and should only be considered in specific circumstances. Multiple defined contribution schemes can sometimes reduce diversification, because many default funds have similar holdings. Older pensions may have unique benefits, including extra tax-free cash and could incur exit penalties. Transferring could have adverse consequences as well as positive ones. Taking advice prior to consolidating is recommended.
