By Giliker Flynn – Family-run independent financial advisers, helping families make the most of their pensions and future income.
Why So Many People Have Old Workplace Pensions
Since the introduction of auto-enrolment in 2012, millions of people have been automatically enrolled into workplace pension schemes.
The result?
Many workers now accumulate multiple small pots over their careers.
Some may forget about old pensions entirely, especially if they’ve changed jobs frequently.
Over time, these pots can become fragmented, underinvested, or poorly monitored.
The good news is: you can often take control of these pensions — and potentially improve your retirement outcome.
Step 1: Find Out What You Have
Before making any decisions, you need a clear picture of all your pension savings.
Check Your Paperwork and Payslips
Old pension scheme statements
Auto-enrolment letters from past employers
P60s and payslips with pension contribution details
Use the Government Pension Tracing Service
The Pension Tracing Service can help locate lost pensions.
👉 https://www.gov.uk/find-pension-contact-details
You’ll need:
Your past employer’s name and address
Any scheme names or reference numbers
Your National Insurance number
Request Scheme Valuations
Once you’ve located each pension:
Ask for a current fund value
Get details of investment performance, charges, and benefits
Check if there are any special guarantees or protected rights
Knowing exactly what you have is the essential first step.
Step 2: Understand Your Options
When you have multiple workplace pensions, you generally have four main choices:
Leave them where they are
Transfer them into your current workplace pension
Transfer them into a personal pension or SIPP
Access or draw from them when eligible
Each option has its benefits, risks, and practical considerations.
Option 1: Leaving Pensions Where They Are
You don’t have to move your pensions. For some people, leaving them in place can be sensible.
Advantages
No transfer costs or complexity.
Some schemes offer valuable guarantees or lower charges.
You can still track them and access them at retirement.
Disadvantages
Harder to manage multiple pots.
Missed opportunities for better investment performance.
Higher overall charges if you’re paying fees on multiple accounts.
Risk of losing track of them again.
Leaving them where they are may work for larger, well-performing schemes — but it can also lead to a scattered retirement strategy.
Option 2: Consolidating into Your Current Workplace Pension
If your current workplace pension is competitive, consolidating older pensions into it can simplify your planning.
Advantages
One pot to manage, making tracking and planning easier.
Potential for lower overall charges.
Access to modern investment options.
Simpler drawdown options at retirement.
Disadvantages
Some older pensions may include guaranteed annuity rates or protected benefits — which would be lost if transferred.
Your current scheme may have investment or access limitations.
Tip: Always check for any valuable guarantees or benefits before consolidating.
Option 3: Transferring to a Personal Pension or SIPP
For more control, some people transfer old pensions into a Self-Invested Personal Pension (SIPP).
Advantages
Full control over investments — including funds, shares, ETFs, and managed portfolios.
Easier to manage multiple old pensions in one place.
Flexibility over how and when you access your money at retirement.
Often lower charges than legacy workplace schemes.
Disadvantages
More responsibility for investment decisions.
May involve transfer fees.
Risk of losing guarantees or protections.
Market risk sits fully with you.
SIPPs can work very well for those who want more flexibility, especially as they approach retirement — but they’re not right for everyone.
Option 4: Accessing the Pension
If you’re aged 55 or over (rising to 57 from 2028), you may be able to access old pensions directly.
You can typically take 25% tax-free.
The rest will be taxed as income when drawn.
You can choose lump sums, drawdown, or annuity options.
This can be useful if you need funds, but careful tax planning is crucial to avoid paying more than necessary — or damaging your long-term income.
Step 3: Weigh the Pros and Cons of Consolidation
Consolidation can make your retirement finances clearer, but it’s not always the right move.
Pros of Consolidation
One pension to manage
Easier to plan withdrawals and investments
Potential cost savings
Modern pension features and flexible access
Greater visibility and control
Cons of Consolidation
Loss of valuable guarantees (e.g. old final salary links or enhanced annuity rates)
Exit charges on some older schemes
More responsibility for ongoing investment management
Not always the cheapest option depending on pot size
Rule of thumb: Always compare charges, investment options, and benefits before transferring.
Step 4: Consider Tax and Allowance Implications
Pension transfers themselves usually don’t trigger a tax bill, but how and when you access the money does.
Taking taxable withdrawals may reduce your annual allowance to £10,000 (Money Purchase Annual Allowance – MPAA).
Consolidating pots can affect how your tax-free lump sum is calculated, depending on scheme rules.
Transfers out of certain older schemes may forfeit protected tax-free cash entitlements.
This is why regulated financial advice is often essential before making a transfer decision.
Step 5: Check for Protected Benefits and Guarantees
Some older workplace pensions offer benefits that don’t exist anymore, such as:
Guaranteed annuity rates
Enhanced tax-free cash rights (above 25%)
Defined benefit features or partial guarantees
Scheme-specific protected ages (allowing early access)
These can be extremely valuable. Transferring out could mean permanently losing them.
Step 6: Assess Investment Performance and Charges
Many legacy workplace pensions have:
Higher annual management charges
Limited investment choices
Poor visibility and online access
Consolidating into a modern, lower-cost pension can significantly improve net growth over time.
A difference of just 0.5% in annual charges can add or remove tens of thousands of pounds over a long retirement.
Step 7: Build a Retirement Strategy Around Your Pot
Old pensions shouldn’t just sit idle. Once you know what you have:
Align investments with your retirement goals and time horizon.
Consider your withdrawal strategy — annuity, drawdown, or blended.
Factor in IHT implications from 2027 onwards.
Ensure the pot works as part of your wider financial plan, not as a forgotten extra.
Special Considerations for Final Salary (DB) Pensions
If you have a defined benefit (final salary) pension:
It provides a guaranteed income for life.
Transferring out is usually irreversible and can be risky.
The transfer value may look attractive, but you’d be giving up valuable security.
FCA rules require regulated transfer advice for transfers over £30,000.
For most people, keeping DB pensions is the safer choice — unless there are very specific reasons to transfer.
How the 2027 Inheritance Tax Changes Factor In
From April 2027, unused pension pots will be included in your estate for IHT.
This makes reviewing old workplace pensions even more important:
Larger, fragmented pots could lead to unnecessary IHT exposure.
Consolidation can make it easier to plan withdrawals and gifting to reduce exposure.
Coordinating pensions with your will and estate plan is now essential.
Case Studies
Case Study 1 — Lost and Found
Paul, 56, had worked for five different employers. He located three old pensions worth £82,000 total using the Pension Tracing Service. After comparing costs and benefits, he transferred them into his current workplace scheme with lower fees.
Result: simpler management, reduced charges, and clearer retirement income forecasting.
Case Study 2 — Protecting Valuable Benefits
Sandra, 60, discovered an old pension with a guaranteed annuity rate of 8% — far higher than current market rates. She decided not to transfer this pot, but consolidated two other smaller ones into her SIPP.
Result: she keeps the valuable benefit while still simplifying her overall pension strategy.
Case Study 3 — Planning for IHT
Michael and Jane, 65 and 63, consolidated £220,000 of old pensions into a SIPP. Over the next two years, they plan to withdraw tax-free cash and gift £100,000 to their children, starting the 7-year IHT clock.
Result: reduced taxable estate, increased flexibility, and better control.
Practical Tips Before You Transfer
Make a full list of all your old pensions.
Check for guarantees or protected benefits before moving anything.
Compare fees, performance and flexibility between old and new schemes.
Consider the IHT position post-2027.
Work with a regulated adviser to avoid costly mistakes.
Don’t rush — a pension transfer is often irreversible.
Our View at Giliker Flynn
Old workplace pensions can either be a hidden asset or a missed opportunity.
Consolidation can offer clarity, lower costs, and better control.
But transferring without checking benefits can mean losing valuable guarantees.
With IHT rules changing in 2027, this is a perfect moment to review your pension landscape.
We help clients take a measured, evidence-based approach to consolidating old pensions, ensuring they get the best from their savings without losing what matters most.
Practical Next Steps
Locate all your pensions using the Pension Tracing Service.
Get up-to-date valuations and benefit statements.
Review costs, performance and guarantees.
Consider consolidation or transfers carefully.
Incorporate tax and IHT planning into your strategy.
Take regulated financial advice if unsure.
Conclusion
Your old workplace pensions might be worth more than you think — and with pension and tax rules changing fast, now is the time to take stock.
Consolidating them intelligently can simplify your retirement, lower costs, and give you more control. But the smartest move is an informed one: check the details, understand the trade-offs, and plan ahead for your future and your family’s.
Important: Tax and pension rules can change, and their value depends on your circumstances. Always seek regulated financial advice before making decisions.
Giliker Flynn is a family-run, independent financial advice firm helping people across the UK take control of their pensions, reduce costs, and plan confidently for retirement.