[Anonymous User]

I have several different pensions, one frozen from 1995, one private personal pension managed by myself through an investment platform), one 18-year pension managed by trustees (defined/guaranteed final sum) and one ongoing pension with my current employer (maxed out contributions to leverage most from my employer contributions). Is it better or worse to leave them all alone to do their own thing so as to diversify the benefits come retirement in the next few years?

[Richard Berry]

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.

[Anonymous]

It depends on your goals. Keeping multiple pension pots can give flexibility and different investment options, but consolidating can simplify management, reduce fees, and make it easier to track growth. The economic benefit often comes from lower charges and more streamlined planning, but check for any exit fees or lost benefits before merging.

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