Consolidate your pensions

Pension consolidation FAQs

• Will consolidating my pensions give them more chance to grow?

  Most pensions give a range of investment options, but these can often be restricted to a small number of funds from a few companies. Whilst all investments can rise and fall in value, consolidating into a pension scheme with a wider investment choice could help to diversify your portfolio and enable you to take advantage of new or promising opportunities as they develop. As a bonus, you can also choose investments that match your values, and support the brands you trust.

  As with any pension it’s important to review your investments regularly and make changes when necessary, which is why 24-hour access is also important. The better your investments perform, the more your pension could be worth in the future. But there’s no guarantee with any pension that you’ll get back as much as you pay in.

  If you’re looking for a wide range of investment options, you could consider transferring to the HL Self-Invested Personal Pension (SIPP). Before transferring, please check for exit fees, and that you won't lose valuable guarantees or benefits.

• What pensions can't I consolidate?

  Any pensions with valuable benefits and guarantees are usually best left where they are. Examples of these include defined benefit and final salary schemes. Guarantees are usually lost on transfer, meaning you might miss out on a potentially valuable benefit.

  You should check your paperwork and speak to your current pension providers if you’re not sure what type of pension you have. If you do have a pension with guarantees, it's likely that you'll need to get advice from a regulated financial adviser before you can transfer.

• Can I combine a pension that my employer contributes to?

  Employers don’t usually agree to continue pension contributions into a pension held elsewhere. So, if your employer is still paying into your pension it usually makes sense to leave it where it is. But once you’ve left that employer, or if they’ve stopped paying in, you’re under no obligation to stick with the same provider.

• How do I find lost pension pots?

  If you think you might have an old pension somewhere, but you’re not sure what the details are or who the provider is, the government’s free pension tracing service can help. Before using the service try to collect as much information as you can, including your old employer’s name, how long you worked there, the company’s last known address etc.

• Can I save money by combining pensions?

  Yes, combining pension pots might help you save money. If you have multiple pensions with lots of providers, it’s likely you’ll be paying management fees with each different company you hold a pension with. Consolidating them into one pension (like the HL Self-Invested Personal Pension) could mean just one set of fees to pay, and one provider to deal with.

• Can I combine my defined benefit pensions?

  If you’re part of a defined benefit (DB) pension, such as a ‘final salary’ scheme, combining your pension into a personal pension (like a SIPP) is probably not in your best interests. These pensions not only give you a guaranteed income, they also normally offer benefits to a spouse or partner once you die. You might be able to transfer, but if the transfer value is more than £30,000 you’ll have to take advice from a regulated financial adviser. If you’d like to transfer to HL, you’ll also need to provide proof that the advice is in favour of transferring.

• How long does it take to combine pensions?

  If your pension is transferred as cash, this means your provider will sell your pension investments, and transfer the cash amount. You will not be invested during the transfer, so you will not make losses or gains. You can buy investments once the transfer is complete. This usually takes 2-4 weeks where the transfer takes place electronically, although some transfers can be complex and take longer. Timeframes also depend on actions from your existing provider. We will keep you updated throughout the transfer process.

  If your pension is transferred as it is (invested in the stock market), your provider will transfer each investment and any cash. If you hold an investment that we don’t offer, we’ll contact you during the transfer to confirm your preference. This type of transfer can take several weeks, depending on your investments and provider. You stay invested during the transfer, so could make gains and losses. Usually, you cannot trade until the transfer completes.

• Can I combine my pension pots with my partner's?

  No, you’re unable to combine your pension pot with your partner’s. However, if you both hold your pensions with HL, you can view and manage your family’s HL accounts from your own login.

  More on linked accounts