There was an interesting article in the Guardian recently that outlined the importance of being cautious before combining your pensions into one pot. Whilst doing so can achieve cost savings, due to fees being discounted on larger pots, there are potential pitfalls to consider:

1. Throwing away enhanced tax-free cash or early retirement options attached to some older pensions
2. Throwing away valuable guaranteed annuity rates attached to some older pensions
3. Paying steep exit penalties
4. Missing out on “small pot” privileges for those potentially affected by the lifetime allowance for pension savings
5. Missing out on “small pot” privileges for those still putting money in.

You can read the article in full: https://www.theguardian.com/money/2019/aug/31/pensions-five-reasons-to-think-twice-before-putting-it-all-in-one-pot

To make an informed decision you need to review the features and benefits of your existing schemes in-depth. Getting independent financial advice is vital. If you feel you could benefit from talking to a Pension Specialist, please contact us on 0114 235 3500.