Lee Clark, financial planner at Brewin Dolphin, said: “If you’ve worked for several employers throughout your career, you might have accumulated multiple pensions across a range of different providers.
“You may also have personal pensions that you’ve set up yourself, especially if you’ve been self-employed or a contractor. Transferring your pensions into one pot could help you keep track of your finances more easily, reduce charges, and boost how much money you have at retirement.
“But while there are advantages to pension consolidation, there are potential drawbacks and it’s important to seek advice on whether it is right for you. There are pros and cons that need to be considered.”
Mr Clark said that keeping on top of several different pensions can be difficult and time-consuming. “If you have, say, ten pensions with ten providers, then that’s ten lots of investment performance to monitor, ten different charges to keep an eye on, and ten statements to read through each year.