Questions to ask before consolidating old pensions
Transferring orphaned pots can cut paperwork — or lose valuable guarantees. Ask these questions first.
Start with guarantees: does the ceding scheme include a defined benefit promise, a guaranteed annuity rate, or protected tax-free cash above 25%? Those features deserve a formal comparison, not a quick online transfer.
Next, compare ongoing charges and exit fees. A cleaner single pot helps tracking, yet higher platform costs can quietly erode gains. Ask for the receiving scheme’s default fund risk level so you are not surprised by equity exposure you never intended.
Finally, check death benefit nominations after any move. Consolidation is a natural moment to update who inherits and whether trusts or dependants need fresh paperwork.
If you would rather walk through a transfer analysis with an adviser, our financial planning review includes orphaned pension mapping.