Combining Pension Pots: Should I Consolidate My Pension?

In this article, the team at Hilltop Finance will explore the benefits of combining your small pension pots into a single larger “pool”, as well as answering the question “, why should I combine all my pension pots?”.

We’ll also provide guidance on how to combine pension pots in a way that works for you with minimal stress and fuss. Read on to find out more about combining pension pots.

What is a Pension?

A pension is a product that an individual saves into for retirement throughout their working life. Any contributions (payments) into your pension are tax-free, so they are a great way of saving tax efficiently.

Once a person reaches their desired retirement age, the money they have saved in their pension can be withdrawn and used to support them. The first 25% of the value of your total retirement pot is tax-free, and any further withdrawals from your pensions will be charged at your standard income tax rate.

Yours may be a workplace pension, into which an employee and their employer pay a monthly amount. Otherwise, it might be an individual personal pension that has personal contributions from the policyholder.

Can I Combine Pension Pots?

Combining pensions can be a smart way to collect all “pots” of money into one easily manageable location. Virtually anyone with more than one pension fund can combine their savings into one pot.

It is not unusual for people to have multiple pension pots at their disposal – whether this is because they’ve held various jobs throughout their career, they have been both employed and self-employed, or they have taken out an individual pension along with workplace contributions. It’s estimated that the average UK worker will have over 12 jobs in their lifetime*, and all probably come with a workplace pension included in your salary package.

So – is it best to combine pension pots? Merging pensions not only helps you to locate and manage all savings in one location quickly, but it could also reduce the chance of paying duplicate provider fees and may even allow you greater flexibility in terms of your investments.

How to Combine Pension Pots

Merging pensions can be very straightforward with the help of a financial advisor. They will look through all the details of your current arrangements and go through the best options available to you. It’s worth noting that pension consolidation may not be suitable for everyone, but your financial adviser should be able to help with this consideration.

You may be advised to consolidate all your pensions into one of your existing schemes, or you might find that setting up an entirely separate pot and transferring all funds into it is the best way forward. Whether merging your pensions is right for you will depend on what you wish to achieve by combining your pensions into one.

Capital at risk, the value of your investments can go down as well as up, and you may get back less than your invested.

Hilltop Finance provides free, no-obligation consultations on merging pension pots. All you need to do is get in touch with our team, and we’ll be more than happy to discuss your options and provide recommendations regarding the best course of action.


In conclusion, combining pension pots with the help of a financial advisor is a simple way to make your savings more manageable, reduce your fees and broaden your scope when it comes to investment opportunities. As with all investments, your capital is at risk, and the value of your funds can go down as well as up.

To discuss your pension today, all you need to do is fill out Hilltop Finance’s simple online contact form and include some basic details. We’ll get in touch with you as soon as possible to discuss your requirements as part of a free consultation.

We look forward to helping you reorganise your savings for a comfortable retirement.

Important information: Our website offers information about investing and saving, but not personal advice. If you’re not sure which services are right for you, please request advice from Hilltop’s independent financial advisers. Remember that investments can go up and down in value, so you could get back less than you put in.

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