Pension Consolidation Calculator

Consolidating pensions can reduce fees, simplify management, and improve investment choice. However, some old pensions have valuable guarantees (final salary, guaranteed annuity rates) that should not be transferred without advice.

Key risks: losing guaranteed annuity rates, losing defined benefit/final salary scheme benefits, early exit penalties, loss of protected tax-free cash amounts, and losing valuable death benefits.

Use the government's Pension Tracing Service (0800 731 0193 or findpensioncontacts.service.gov.uk) to trace old employer pensions. Keep records of all previous employers.

Modern pension platforms charge 0.15-0.45% annually for the platform, plus fund charges of 0.05-0.75%. Older pension policies often charge 1-2% annually, making consolidation financially attractive.

Defined benefit (final salary) pensions should almost never be transferred unless you have very specific circumstances. The guaranteed income is usually far more valuable than the transfer value.

Submit a transfer request to both pensions. The ceding scheme provides a transfer value. The receiving scheme accepts the transfer. The process takes 4-12 weeks and some schemes charge exit fees.

No. Transfers between registered pension schemes are tax-free and do not count as contributions. Your annual allowance and lifetime allowance are unaffected by transfers.

QROPS (Qualifying Recognised Overseas Pension Schemes) allow transfer to overseas pension schemes. UK pensions can be transferred but this is complex — always seek specialist advice.

Yes. A Self-Invested Personal Pension (SIPP) accepts transfers from other registered pension schemes. SIPPs offer wider investment choice including individual shares, funds, and commercial property.

Some providers charge transfer-out fees (up to 1% or £100-£200). New pension providers rarely charge transfer-in fees. Compare all-in costs including initial, annual, and transaction charges.

No. Defined benefit (final salary) pension income guarantees are extremely valuable. Never transfer without regulated financial advice, and only if the transfer value exceeds the value of guaranteed income.

Review annually. Check charges are still competitive, investment allocation matches your risk profile and time horizon, and contributions are on track for your retirement income target.