Do you know how many times the average person changes jobs in their lifetime? 12 times, according to the latest available public survey data from 2019. 

With each new workplace comes a new pension pot and maybe a new pension provider. So what’s the best way to manage them all?

This will depend on a couple of things, mainly the types of pensions you have. 

If you’re lucky enough to have a defined benefit pension, for most people leaving it where it is will be the best choice. If you’re thinking about transferring it you’ll need to take independent financial advice.

Most of us will have defined contribution pensions. 

The main reasons to consolidate these are:

• Easier admin – you only have to deal with one company when dealing with your pensions.
• No trouble tracking – it’s easier to track your pension’s performance against your retirement goal. You’ll be able to see in one place how your pension is doing and work out what you need to do to increase it. 
• Make changes in one place – it’s easier to review your investment choices and make changes all in one place.
• Lower fees – you might reduce the overall charges of your fund by transferring them all into one place. 

Before you consider transferring your pensions, you’ll need to check whether your old pensions have any attractive benefits. For example, one of them might include additional death benefits (like a lump sum paid to your loved ones should you die) which you may not want to lose.

The right answer to the question ‘should I consolidate my pensions’ will look different for everyone as everyone’s situation and goals are different. The best thing to do is gather all the information you need and make the best decision for you.