How many pensions can you have?

I’ve had a number of different jobs over the years and have accumulated lots of pension pots in different places.With auto-enrolment now enrolling you in a workplace pension at every job you have, I’ll probably end up with even more pensions before I retire.

How many pensions can I have in total, and are there tax implications for having too many pensions?

Question asked by Mr S O'Connor
Need Pension Advice?
Call us on 02084327333
First Name
Phone
Email

Answered by Michael Englefield

 How many pensions are you allowed to have?

You’re right about auto-enrolment – lots of people will probably soon be asking if there’s a cap on the number of pensions you can have.

Auto-enrolment makes it a requirement for employers to provide their employees with a pension as the government looks to stave off a retirement savings crisis.

Can you have too many pensions?

However, with few people sticking in one job for life, it’s likely lots of people will end up with multiple pension pots spread across different pension providers.

First of all, to put your mind at rest, HMRC won’t be coming after you for having too many pensions. There is no limit to the number of pensions a person is allowed.

Providing you don’t save more than your lifetime allowance into all of your pension funds combined – currently set at £1 million – you won’t be penalised by the taxman for having lots of pensions. The government actually offers a pension tracing service so you can find your lost pensions.

How many pensions are you allowed to have?

Should I consolidate my pensions?

While you can have as many pensions as you like and still most likely be safe from HMRC, the question you should probably be asking is are you being penalised by pension providers for having too many pensions?

Not that pension providers are actively looking to penalise you for having multiple pension funds, but the fact is that each pension pot incurs separate investment and management fees. You can gain economies of scale by consolidating your pensions into fewer funds.

  • How are your various pensions invested?
  • How well are your pensions performing?
  • What are the charges on your pension?
  • Are you happy with the returns your pensions are making?

Those are tricky enough questions to answer when you’ve only got one pension, let alone several pension pots spread across lots of pension providers.

In such situations, receiving pension transfer advice can turn your pensions into fewer, easier to manage pots. Not only will you cut management charges, but you’ll be able to better see how they’re performing, and whether they can give you the retirement you’ve been planning for.

 

Need pension consolidation advice?

If you’re thinking about consolidating your pensions, the first step is to ask for pensions advice.

There are a number of pitfalls you wouldn’t want to fall foul of during the pension consolidation process. This is particularly true when it comes to consolidating defined benefit pensions, and some pension providers might impose exit charges.

You’ll also need to be wary when consolidating older pension plans – many pensions sold in the 1980s contained a generous guaranteed annuity rate (GAR), which you’d lose if you transferred out of that particular pension scheme.

To save you worrying about this, our expert pension advisers are equipped to help. Why not give one of them a ring on 02084327333? They’re available to discuss all of your pension consolidation needs.

Pensions
 
Pension pots
 
Pension consolidation
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Start your journey today...
  Find out how a Drewberry financial adviser can help you reach your destination by making the most of your finances.
Call us on 

Frequently Asked Pensions Advice Questions

 
What will happen to my pension when I die? Will it just stop or can I pass it on...
 
I’m looking to invest for my retirement and want to know how to go about starting a new pension....
 
I’m worried that if the company I work for were to go bust or run into financial difficulty, I...
 
I have a protected rights pension from the past and another one I’m currently paying into. I’m...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Kevin Paul
05/09/2017

Excellent service renewing our medical insurance, professional advice, good rates found and excellent professional after service, highly recommended.

Max Edgar
09/09/2017

Nadeem was brilliant. He was very patient and worked very well with me to come up with the best solution possible for my budget. Perfect solution. Thank you very much.

Aidan Smyth
11/09/2017

Dealt with me promptly and provided me with the most cost-effective option consistent with my requirements. Very pleased and thank you.

We are rated 4.9/5 based on 1129 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.93 / 5 Average
1,222 Reviews
A
Overall Rating
Really, really helpful! Stopped me from signing up with an unhelpful company, and did basically all of the legwork for me in signing up with the right one. I can't have been the most helpful client as I'm 19 and only just started looking into it last week, but he took all the questions in stride! Put up with me turning to ask my dad questions every 2 minutes as well. I was helped by 2 workers; Sam and Nick. Thank you very much to both!
L Finch
Overall Rating
Good communication and follow ups. Friendly. A thorough research for my insurance needs.
M
Overall Rating

Sam Barr-Worsfold was very helpful and provided excellent customer service. Sam discovered I was paying too much premium for my current cover. Sam recommended and helped moved to a new cover with lower premium that provided the level of cover (terms required stated in the provider's policy) I wanted. I recommend highly recommend Sam and Drewberry Insurance. Thank you Sam.
Anonymous
Overall Rating
Thorough, knowledgeable and great communication
Anonymous
Overall Rating
Went through each policy in detail and made sure I was getting the correct one for me