Combining Pensions Martin Lewis UK 2026

Combining Pensions: Martin Lewis Advice and Key Rules UK 2026

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 7 Apr 2026

Last reviewed 18 Apr 2026

✓ Fact-checked

What does Martin Lewis say about combining pensions?

Martin Lewis of MoneySavingExpert broadly supports pension consolidation for people with multiple small defined contribution (DC) pension pots, but with important caveats. His core message is: never transfer a defined benefit (final salary) pension without regulated advice, and always check for valuable guarantees before transferring any pot.

Martin Lewis key rule: NEVER transfer a defined benefit (final salary) pension without regulated financial advice. For DC pots with no guarantees, consolidating into a lower-fee SIPP often makes sense.

Martin Lewis on defined benefit pensions

Martin Lewis has repeatedly warned that defined benefit (DB) pensions — which pay a guaranteed income based on salary and years of service — are extremely valuable and almost always worth keeping. The guaranteed income from a DB pension is something no DC pot can replicate without buying an annuity, and annuity rates typically make the DB income look exceptionally good value.

When Martin Lewis says combining makes sense

Multiple small DC workplace pension pots from past employers
Old pots charging high annual management fees (above 0.75 to 1%)
Difficulty tracking multiple providers and keeping beneficiary nominations up to date
Wanting a simpler, single view of retirement savings
Moving to a lower-cost SIPP provider (e.g. Vanguard at 0.15% vs an old provider at 1%)

When Martin Lewis says do NOT combine

Defined benefit (final salary) pensions — the guaranteed income is almost always more valuable than the transfer value
Pensions with guaranteed annuity rates (GARs) — a GAR can pay 2x or more the open-market annuity rate
Pensions with enhanced tax-free cash above 25% — some older schemes allow more than the standard 25% PCLS
Active workplace pension where employer still contributes — transferring means losing ongoing employer contributions
Any scheme with safeguarded benefits over £30,000 — FCA rules require regulated advice before transfer

How much do old pension fees cost you?

Annual fee	Effect on £50,000 pot over 20 years (6% growth assumed)	Cost vs 0.15% fee
0.15% (Vanguard)	~£155,000	—
0.45% (Hargreaves Lansdown)	~£148,000	£7,000 less
0.75%	~£140,000	£15,000 less
1.00%	~£134,000	£21,000 less
1.50%	~£122,000	£33,000 less

How to find old pension pots

Use the government Pension Tracing Service at gov.uk/find-pension-contact-details — free, requires old employer name
Contact the MoneyHelper Pension Tracing Service at moneyhelper.org.uk
Check old payslips or P60s for employer details
The average lost pension pot is worth approximately £13,000 (PensionBee, 2024) — worth finding

Verdict

Consolidate old DC pots — leave DB pensions untouched

Martin Lewis consistent advice: old DC pots with high fees are worth consolidating into a low-cost SIPP. Defined benefit pensions are almost never worth transferring. Check for guarantees before touching any pot. Use the Pension Tracing Service to find lost pots first.

Frequently asked questions

Should I combine my pensions into one?

For defined contribution pots with no special guarantees, consolidation often makes sense — especially if any old pot charges above 0.75% annually. Always check for guaranteed annuity rates, enhanced tax-free cash, or defined benefit promises before transferring.

Is it free to consolidate pensions?

Most receiving providers (SIPPs like Vanguard, AJ Bell, PensionBee) charge no transfer-in fee. Your old provider may charge a transfer-out fee of £25 to £200. Check before initiating.

How long does pension consolidation take?

Typically 4 to 8 weeks for straightforward DC transfers. Older or more complex schemes can take up to 12 weeks. Your new provider should give a timeline at the outset.

What is a guaranteed annuity rate?

A GAR is a promised annuity rate built into some older pension schemes, often offering 2 to 3 times the current open-market rate. If your pension has a GAR, transferring away permanently loses this benefit — it is almost always financially damaging to transfer a pension with a GAR.