This pension consolidation calculator compares the charges on your existing pension pots against a single consolidated plan. Enter your pot values and annual charges to see the fee difference over 10, 20 and 30 years — and how much extra your retirement fund could be worth by paying less in fees.
Existing pots vs consolidated plan
Pension charges are deducted from your pot every year, reducing both its value and its growth. A seemingly small difference — say 1.2% versus 0.45% — compounds dramatically over decades. On a £50,000 pot growing at 5% per year, the higher charge costs roughly £18,000 more over 20 years and £45,000 over 30 years.
Most people have multiple pension pots from different employers, each with its own charging structure. Older workplace and personal pensions often charge 1% to 2% per year. Modern auto-enrolment schemes are capped at 0.75%, and low-cost SIPPs charge 0.15% to 0.45%. Consolidating into a cheaper plan can be one of the simplest ways to improve your retirement outcome.
Guaranteed annuity rates (GARs). Some older pensions offer guaranteed annuity rates that are far more generous than current market rates. Transferring away loses this benefit permanently.
Protected tax-free cash. If your pension was set up before 6 April 2006 and you have more than 25% tax-free cash entitlement, transferring may reduce this to the standard 25%.
Defined benefit sections. If any part of your pension is defined benefit (final salary or CARE), transferring requires independent financial advice for transfer values of £30,000 or more. DB pensions provide a guaranteed income for life — rarely worth giving up.
Exit fees. Post-April 2017 contracts have zero exit fees. Older contracts can charge up to 1%. With-profits funds may apply a market value reduction (MVR).
Pot 1: £25,000 at 1.2% charge = £300/year in fees today
Pot 2: £18,000 at 0.75% charge = £135/year
Pot 3: £8,000 at 1.5% charge = £120/year
Total: £51,000, blended charge 0.99%, costing £555/year in fees
Consolidated SIPP: £51,000 at 0.45% = £229.50/year
Year-1 fee saving: £325.50. Over 20 years at 5% growth, this compounds to roughly £12,000+ more in your pot.
Step 1: Find your old pensions. Use the Pension Tracing Service (free, gov.uk) to track down lost workplace pensions. You need the employer name and approximate dates of employment. The service gives you the contact details of the pension provider.
Step 2: Get transfer values. Contact each provider and request a transfer value quote. This is the amount they will transfer to a new scheme. Check for exit fees, guaranteed benefits, and any penalties.
Step 3: Choose a destination. Compare SIPP and personal pension providers on total charges (platform fee + fund charges + dealing costs). The lowest headline fee is not always the cheapest once all components are included.
Step 4: Initiate the transfer. Your new provider will handle the transfer process. It typically takes 4 to 8 weeks. Keep records of all transfer values and dates for future reference.
Use the pension calculator to project your total pot at retirement. The pension drawdown calculator models income in retirement, and the pension tax relief calculator shows the boost from government tax relief on contributions.
Consolidating can reduce charges, simplify administration and give you a clearer view of your total retirement savings. However, you should check for valuable benefits first — some older pensions have guaranteed annuity rates, protected tax-free cash above 25%, or defined benefit sections that would be lost on transfer. Always check before transferring.
A lot over the long term. The difference between a 1.5% annual charge and a 0.5% charge on a £50,000 pot over 20 years at 5% growth is roughly £18,000 in extra charges. That is money that could have compounded in your pot. Auto-enrolment pensions are capped at 0.75% but older workplace and personal pensions can charge 1% to 2% or more.
Since April 2017, exit fees on pension transfers are capped at 1% for contracts taken out before 2017, and 0% for contracts taken out from 2017 onwards. Some older pensions have market value reductions on with-profits funds, which can reduce the transfer value. Check your annual statement or contact your provider.
A typical pension-to-pension transfer takes 4 to 8 weeks. During the transfer, your money may be out of the market for a period, which is a risk in volatile markets. Some providers offer in-specie transfers (transferring the investments directly without selling), which avoids this but is not available with all providers.
You can transfer a defined benefit (final salary or CARE) pension, but if the transfer value is £30,000 or more, you are legally required to take independent financial advice first. Transferring a DB pension means giving up a guaranteed income for life, which is rarely a good idea. Most financial advisers would only recommend it in exceptional circumstances.
Qualifying auto-enrolment pension schemes are subject to a charge cap of 0.75% of funds under management per year. This applies to the default investment fund only — if members choose alternative funds, those may have higher charges. Employer and employee contributions are set at minimum 3% and 5% respectively (8% total).
Yes. A Self-Invested Personal Pension (SIPP) is a common destination for consolidation because it offers wide investment choice and competitive charges (typically 0.15% to 0.45% platform fee). Make sure you compare the total cost including platform fee, fund charges and any dealing fees against your current pensions.
