logo
How to consolidate your auto-enrolment pensions and make the most of them

How to consolidate your auto-enrolment pensions and make the most of them

Independent11-04-2025

Employers in the UK must set up auto-enrolment pensions for eligible employees – typically those older than 22 and earning at least £10,000 a year – and will then contribute to the pot along with the employee's own monthly contribution from their pay packet. This is very useful for gradually building a solid pension pot to draw from when you retire, but anyone who's changed jobs since this law came into force will know that those plans can lie dormant when a new one is set up. If you're a job-hopping millennial or Gen Z worker, these plans can start to pile up and can easily be forgotten.
'The estimated value of lost pension pots across the UK has risen to more than £31 billion (31.1bn) – that's equivalent to £931* for every working person,' says Lizzy Holliday, director of public affairs and policy at now:pensions. 'If you've been working for a while, it's highly likely that you will have accumulated several workplace pensions with previous employers and may have lost track or don't remember whether you had a pension with any of them.'
It's important to keep those pensions in mind as you continue through your career, and for many people one of the best options is to consolidate them into one, easily-managed plan.
But how do you do that, what should you consider before doing it, and what potential downsides should be kept in mind?
Let's take a look – please note that nothing detailed herein constitutes individual financial advice, and it is highly recommended that you source advice before taking any action. Pensions are a long-term investment and your capital is at risk.
How to consolidate auto-enrolment pensions
Consolidating your pensions essentially means merging your different pension pots into one, giving you a combined sum that can be easily managed in one place. The traditional method is to do it manually by gathering information on all of your pensions and doing the necessary paperwork to get them moved over to the singular plan you want to use.
'When it comes to consolidating, the first step is to gather all the information about your existing pensions,' says Fiona Peake, personal finance expert at Ocean Finance. 'Make sure you have up-to-date details for each one, such as the provider, the value of the pension, and the terms of the scheme. You can usually do this by checking your annual pension statement or contacting your previous employers or pension providers directly.'
Once you've gathered all of this information, you will then need to request a pension transfer form from each one, complete them, and submit them for transfer. Before you can do that, however, you have to decide to where all of those pots should be transferred.
'Once any pensions have been tracked down, employees should look at their different providers, pension savings and protections with existing pots that they may have and decide whether and where to consolidate their pensions,' says Holliday. 'They can do this by asking a pension provider to consolidate their pots for them.' As Holliday says, some pension providers, such as PensionBee and Aviva, can do much of the legwork on your behalf.
However, it's important to take stock before pulling the trigger. 'Consolidating pension savings isn't always the right solution, and savers should consider the pros and cons as well as seeking advice if needed,' adds Holliday. 'The UK government-backed MoneyHelper service is another great resource with lots of helpful guidance on its website.'
What should you consider before making the switch?
As Holliday says, there are pros and cons to consider before consolidating your plans. Many of these are specific to the plans you already have and any additional benefits they may offer, but your own long-term financial plans and goals need to be factored-in, too.
First up, find out whether any of your existing plans are in lifestyle funds. These funds automatically adjust your investments as you approach pension age, often by directing them to more low-risk options. If this suits your long-term plans, check whether the target pot provides this option. If you prefer to manually select where your funds are invested and your preferred risk level, check whether the pot you're consolidating into provides this level of control.
Additional benefits may also apply to your old pension plans that are worth retaining. 'Another consideration is whether your current pensions come with valuable guarantees,' says Jono Randell-Nash, independent financial adviser at MWA Financial Advice. 'Features like enhanced life or death benefits, guaranteed annuity rates, or scheme-protected tax-free cash may be lost when transferring, so it's essential to understand what's at stake.'
We've already touched on checking that your target pension plan provides the control and oversight options that you want, but there's more besides these to consider. A major one is where and how your funds are invested, and whether the plans offered by your new main pension provider suit your preferred risk levels and ethical considerations. For example, if you want your funds to be invested in green solutions rather than gas and oil, check whether there's an investment plan that meets this aim.
Fees are another essential element to understand before making the switch. 'Look closely at their charging structures – are their fees transparent and competitive?' says Randell-Nash. 'Beyond that, be aware of any penalties or hidden charges associated with consolidating, such as exit fees, switching costs, or adviser fees. If you're comfortable with the fees, make sure they are appropriate for the level of service and management your new pension offers, including any ongoing plan or annual charges.'
Tax-related issues are another thing to consider, and again it's recommended to seek expert advice to assess your own situation and circumstances. Annual contribution limits and inheritance tax are just a couple of factors that need proper consideration before consolidating your pensions.
How to track down lost pensions
If you've lost track of any pensions, you've got a few options available to get them back in sight.
'We are looking forward to seeing further progress from the Government's Pensions Dashboard Programme, which will enable savers to see all their pensions savings in one place,' says Holliday. 'In the meantime, the Pension Tracing Service is a free-to-use service that can help employees to track down their old workplace pensions. The Pension Tracing Service will provide you with the contact details of the pension's administrator where you might have a pension pot. You'll then need to contact the provider to find out whether you have a pot with them and the value.' The Pension Tracing Service is accessible here or by phone at 0800 731 0193.
Other options include contacting your former employers to check which schemes they use, and then follow up with the relevant providers. Provided you've got your National Insurance number and personal details to hand, the providers will be able to find and restore your access. Some providers, such as PensionBee, can find and consolidate your pensions even if you only know the name of a provider you've had previously.
The bottom line
You should now have a good understanding of what pension consolidation is, how to do it, and what you should consider before rolling your pensions into one place. While the benefits of having everything in one, easily-managed platform may seem like a no-brainer, it's important to exercise caution lest you inadvertently encounter fees or lost benefits that you weren't expecting.
As already mentioned, it's important to seek expert advice and guidance before making any changes. You'll be glad to have all your auto-enrolments present and accounted for, but you'll be even happier to have done it without any nasty surprises.
*31.1 billion divided by 33.37 million (working population) is around £931 per working person, House of Commons Library, UK Labour Market Statistics – 15th October 2024.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Winter Fuel Payment scams rise and how to avoid them
Winter Fuel Payment scams rise and how to avoid them

Glasgow Times

time6 hours ago

  • Glasgow Times

Winter Fuel Payment scams rise and how to avoid them

The payment was only available to pensioners receiving Pension Credit or other means-tested benefits. It will now be made to anyone with an income of under £35,000 a year, but many pensioners are unsure on whether they qualify. "There's a lot of confusion about who qualifies and who doesn't," says Fiona Peake, Personal Finance Expert at Ocean Finance. "Simply put, if you're over state pension age and your total annual income is £35,000 or less, you'll receive the payment. This includes income from private pensions, freelance work, and interest on non-ISA savings." The full details were announced here. Millions of pensioner households faced unaffordable energy costs last winter. While the changes will provide some relief to these households, there will still be pensioners unable to afford the high cost of energy and living in cold damp homes. So now the Government must focus… — End Fuel Poverty Coalition (@EndFuelPoverty) June 9, 2025 "It'll land in your bank account automatically, likely in November or December," says Fiona. "No forms, no calls, no claims. For those who know they'll be over the income limit, there'll be a way to opt out of the payment completely, to avoid having to repay it later but the government hasn't said exactly how yet. "The Winter Fuel Payment will be a lifeline for nearly two million older households who are living in fuel poverty, but the new eligibility criteria make things more complicated. A single pensioner earning £36,000 a year could have to pay back the full amount, while a couple earning £69,000 could keep every penny. That creates grey area scammers love to exploit." Devolved authorities in Scotland and Northern Ireland will each receive a funding uplift so they too can meet the new threshold. Independent Age chief executive Joanna Elson said: 'We are pleased that the UK Government has listened to the voices of older people on a low income and reconsidered what was an incredibly damaging change to the winter fuel payment. 'By widening the eligibility criteria, more older people in financial hardship will now receive this vital lifeline in time for winter. 'Our helpline receives thousands of calls from older people making drastic cutbacks just to get by and the changes to the winter fuel payment made this worse. For millions living on low incomes, the entitlement supports them to turn their heating on and stock up on food during the colder months. 'While the changes to the winter fuel payment are positive, they are not a silver bullet that will end pensioner poverty.' Recommended reading: What to do if you think you have been the victim of a scam First up, don't panic, and don't blame yourself - it's easily done. The sooner you report it, the better. Siobhan Blagbrough, Financial Crime Manager at Ocean Finance, says: 'Fraudsters often pounce on government announcements to trick people when the public is most likely to be unsure of the rules. We're already seeing fake messages pretending to be from the Department for Work and Pensions (DWP), urging pensioners to 'apply now' or risk missing out on their £300 payment. "These scam texts often include fake links and ask for personal details or for people to reply 'YES' to claim the payment. These messages are bogus. The DWP has confirmed that eligible households will receive the money automatically, and no application is needed. 'If you've already clicked a link or given details, contact your bank immediately. You can also report it to Action Fraud on 0300 123 2040. Above all, trust your instincts. Genuine government payments won't be sent via text messages with links or requests for personal information.'

‘Three to five sprays or risk annoying people': The rules of aftershave for modern men
‘Three to five sprays or risk annoying people': The rules of aftershave for modern men

Telegraph

time7 hours ago

  • Telegraph

‘Three to five sprays or risk annoying people': The rules of aftershave for modern men

The fragrance market is booming right now – and men are leading the charge. Data from analytics firm Euromonitor says that the global male fragrance market is predicted to be worth $22 billion (£18.6 billion) by the end of 2025, thanks to 4.2 per cent growth year-on-year (as opposed to 3.5 per cent the year before). And while men of all ages are increasingly willing to spend more on fragrance, it's one group in particular who are driving the trend: Gen Z. According to American market research company Circana, men currently between their 14th and 29th birthdays are becoming increasingly serious about scent. In 2020, 34 per cent of this age bracket reported using fragrance, but as of 2024, that had risen sharply to 56 per cent. In short, men are buying more scents than ever before and at a younger age than ever before – so the real question is, are they deploying them correctly? First, it's worth saying that the world of scent is highly divisive because how we want to smell (and how we want others to smell) is so subjective, but it can also be mind-bogglingly complicated. In great part, this is down to the language we use around fragrance. For example, in the UK, we tend to call the entire category of scent 'perfume' and men's fragrances 'aftershaves', whereas in America, men's scents all tend to get called 'colognes'. We tend to use these words interchangeably, but these are all actually specific categories of the types of scents we wear, which are based on the concentration of aromatic oils within the scent itself (the rest being water and alcohol). So, in order from highest concentration to lowest, the spectrum starts with parfum (which has a perfume oil concentration of 20 to 40 per cent), then onto eau de parfum (15 to 20 per cent), eau de toilette (five to 15 per cent), eau de cologne (or what we Brits tend to call 'aftershave', at two to five per cent), and finally eau fraîche (one to three per cent). The higher the concentration of oils within the juice, the stronger and more powerful it will be from fewer spritzes. In other words, getting those spritzes right is the difference between your appearance at your next event being a subtle, seductive whisp as you are greeted versus an absolute nuclear bomb that announces your arrival three streets away. So now we've got that sorted, what should every man be aware of when applying scent? That's where the experts come in… Where should you apply aftershave? Before we get into the nitty gritty of how much to spray on, let's discuss where to apply your favourite fragrance. 'For a swoon-worthy fragrance experience, apply on clean, freshly showered skin,' says perfumier Azzi Glasser, founder of The Perfumer's Story, who creates bespoke scents that help A-list actors like Jude Law and Helena Bonham Carter get into character for their movies. 'Around the neck and the chest is a must, but also make sure you hit the pulse points on the back of your neck, wrists, hair and back of the knees. The increased heat here, thanks to blood flow being closer to the surface of the skin, will activate the full effect of your fragrance.' How many spritzes? A perennial question men ask about fragrance is how many spritzes is correct? 'A good rule of thumb is between three and five sprays across your chosen pulse points,' says Karine Dubreuil, a master perfumer who recently crafted Givenchy's Gentleman Society Eau de Parfum Ambrée. However, the number of sprays of a fragrance that you need may depend on the situation. 'If you're on a date, a hint of a scent is enough. In an office environment, less is more. If you're working from home, spray liberally and enjoy the fug of your chosen favourite fragrance,' advises Sarah Reason, owner of cool, independent fragrance boutique Soliflore in Brighton. 'It's far better to err on the side of restraint and have your fragrance be an invitation to get closer. After all there's no better compliment than 'you smell great' when greeting someone.' And sometimes it's not about the amount you spray, but the notes within it – a lighter citrus, for example, will often be less intrusive than a deep, rich woody, resinous or leathery scent. However, it's these bold, strong notes that tend to get included in fragrances for men. 'If you're rocking an uber toxic masculine projector of utter doom fume, these can be very annoying to other people,' says David Seth Moltz, co-founder of edgy Brooklyn-based scent house, DS&Durga. 'I like strong perfumes that are more balanced – with these you can go two to six sprays with confidence. However, if you think it's cool to spray ten spritzes, you might have a problem.' Should the amount you apply change as we age? In the same way that younger ears can hear a wider range of decibels, so too are more mature noses less sensitive to scents. 'As we age, our sense of smell fades – this is called presbyosmia, so there's a chance you might end up spraying too much,' Reason cautions. 'And with ageing comes drier skin, so your favourite fragrance might not last as long (as fragrance clings to moisture), meaning you'll need to spray more.' Keep it fresh It's not just an age thing. If we are around any scent for a sustained period of time, we tend to stop noticing it. This nose blindness also means you could end up applying more to compensate – potentially meaning others are suffocated by your scent. What you need is the equivalent of a pallet cleanser for your nose. 'If you have a signature perfume you wear everyday, it becomes so familiar to you that your brain becomes numb to it,' says Lyn Harris, the mastermind behind niche British fragrance house Perfumer H. 'I recommend wearing a different scent for a month – perhaps a light, simple cologne – and that will reignite your olfactory system to your favourite scent.' Some brilliant aftershaves to try Gentleman Society Eau de Parfum Ambrée by Givenchy, £110 Originally launched in 1974, Givenchy Gentleman became a heady icon for the disco generation. This new flanker continues its forefather's legacy in a more contemporary way by splicing the original's sensual vanilla, wood and vetiver with powdery orris, smooth tobacco and aromatic sage. One that'll put hairs on your chest – gold medallion not necessary. Buongiorno Eau de Parfum by Acqua di Parma, £217 Inspired by the arrival of spring in Tuscany, the latest release from storied Italian scent house Acqua di Parma is a blast of crisp mint, tart lemon, clean lavender and botanical basil. A fresh, herbaceous and cooling citrus that's perfetto for the warmer months ahead on home soil or abroad. Terre d'Hermès Eau de Parfum Intense by Hermès, £120 A deeper, darker, more intense new take on the modern classic Terre d'Hermès. Yes, the original's bergamot and black pepper is present, but this juice is defined by its unctuous and addictive notes of coffee and liquorice, and an interest-piquing fantasy note of lava bringing warmth, earthiness and minerality. Steam Eau de Parfum by Perfumer H, £140 Created to evoke the mountain mists that roll in over the forests of Jingmai in China, Steam by British perfume house Perfumer H centres on a verdant, tannin-y green tea note, enhanced by sweet mandarin, aromatic coriander, juniper and cedarwood. Wonderfully warm, wet and comforting for those cool summer mornings. Brown Flowers Eau de Parfum by DS & Durga, £159 New York perfume house DS & Durga is known for its complex and intriguing formulations – and their 1970s-evoking new release Brown Flowers is no exception. Decadent and provocative, instantly recognisable sweet jasmine is given an edge by freshly ground coffee and earthy, sexy musk. Definitely one for after dark. Mystère Vetivert Eau de Parfum by The Perfumer's Story, £98 A favourite of A-lister Jude Law, Mystère Vetivert was created by perfumer-to-the-stars Azzi Glasser in tribute to her father. Its mix of green cypress, laurel and violet leaf, underpinned by a smoky, dry-mossy combination of vetiver, sequoia and clarysage make this scent feel as comforting as it is sophisticated. American Psycho Eau de Parfum by 19-69, £160 Inspired by Patrick Bateman's penchant for sparkling water, icy sorbet and hours spent perfecting his skincare in the bathroom, this scent's blend of frosted citrus, cool aquatic notes and crisp carnation flower, pine and jasmine makes for a sparkling summer scent. An everyday fragrance to die for, you could say. Cypress & Grapevine Cologne Intense by Jo Malone London, £160 Mossy, woody and aromatic, this is a distinctly masculine mix of earthy, sappy cypress branches and damp, dark green undergrowth with the gentle warmth of cedar. Imagine a traditional barbershop scent splashed on after shave – but that barbershop is in the middle of a forest and covered in a tangle of vines.

Winter Fuel Payment scams rise and how to avoid them
Winter Fuel Payment scams rise and how to avoid them

South Wales Guardian

time7 hours ago

  • South Wales Guardian

Winter Fuel Payment scams rise and how to avoid them

The payment was only available to pensioners receiving Pension Credit or other means-tested benefits. It will now be made to anyone with an income of under £35,000 a year, but many pensioners are unsure on whether they qualify. "There's a lot of confusion about who qualifies and who doesn't," says Fiona Peake, Personal Finance Expert at Ocean Finance. "Simply put, if you're over state pension age and your total annual income is £35,000 or less, you'll receive the payment. This includes income from private pensions, freelance work, and interest on non-ISA savings." The full details were announced here. Millions of pensioner households faced unaffordable energy costs last winter. While the changes will provide some relief to these households, there will still be pensioners unable to afford the high cost of energy and living in cold damp homes. So now the Government must focus… "It'll land in your bank account automatically, likely in November or December," says Fiona. "No forms, no calls, no claims. For those who know they'll be over the income limit, there'll be a way to opt out of the payment completely, to avoid having to repay it later but the government hasn't said exactly how yet. "The Winter Fuel Payment will be a lifeline for nearly two million older households who are living in fuel poverty, but the new eligibility criteria make things more complicated. A single pensioner earning £36,000 a year could have to pay back the full amount, while a couple earning £69,000 could keep every penny. That creates grey area scammers love to exploit." Devolved authorities in Scotland and Northern Ireland will each receive a funding uplift so they too can meet the new threshold. Independent Age chief executive Joanna Elson said: 'We are pleased that the UK Government has listened to the voices of older people on a low income and reconsidered what was an incredibly damaging change to the winter fuel payment. 'By widening the eligibility criteria, more older people in financial hardship will now receive this vital lifeline in time for winter. 'Our helpline receives thousands of calls from older people making drastic cutbacks just to get by and the changes to the winter fuel payment made this worse. For millions living on low incomes, the entitlement supports them to turn their heating on and stock up on food during the colder months. 'While the changes to the winter fuel payment are positive, they are not a silver bullet that will end pensioner poverty.' Martin Lewis shares 'crucial need to know' energy bill rules First up, don't panic, and don't blame yourself - it's easily done. The sooner you report it, the better. Siobhan Blagbrough, Financial Crime Manager at Ocean Finance, says: 'Fraudsters often pounce on government announcements to trick people when the public is most likely to be unsure of the rules. We're already seeing fake messages pretending to be from the Department for Work and Pensions (DWP), urging pensioners to 'apply now' or risk missing out on their £300 payment. "These scam texts often include fake links and ask for personal details or for people to reply 'YES' to claim the payment. These messages are bogus. The DWP has confirmed that eligible households will receive the money automatically, and no application is needed. 'If you've already clicked a link or given details, contact your bank immediately. You can also report it to Action Fraud on 0300 123 2040. Above all, trust your instincts. Genuine government payments won't be sent via text messages with links or requests for personal information.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store