Most people don’t set out to collect pensions. When changing jobs, quietly in the background one workplace pension becomes two.
Many years later, those two could have become four. Providers can change names, old statements often disappear into a drawer, and before long you know you have pensions somewhere without being entirely sure what they are all doing.
That has become a big enough problem that the pension system itself is now trying to address it.
The Department for Work and Pensions estimates there are now more than 13 million deferred pension pots worth less than £1,000, with around one million more being created each year. In September 2026, the Government opened a new consultation on how certain eligible small, dormant defined contribution workplace pension pots could eventually be brought together automatically.
But the bigger story is not really about tidying up small pension pots. It is about how difficult it can become to see the whole picture.
How we ended up with so many pensions
When you change jobs, your old workplace pension will often stay where it is.
Under automatic enrolment, starting with a new employer will usually mean joining another workplace pension scheme. Over time, that can leave people with several different pots, held with different providers and rarely looked at together.
Five pensions do not necessarily mean five problems. The difficulty often comes when they are not considered together. You may not know exactly where they all are, who they are with or what they are worth. That becomes harder again when several statements arrive each year without giving you a clear sense of how those pensions fit into your wider retirement planning.
All in all, this makes the overall picture harder to understand.
What the Government is trying to change
The Pension Schemes Act 2026 established the framework for a system designed to bring certain eligible small, dormant pension pots together automatically. The Government is now consulting on how that system should work in practice.
The current proposals focus on defined contribution pots held in charge-capped default arrangements created since automatic enrolment was introduced. Among the proposed eligibility conditions are a pot value of £1,000 or less and no contributions having been made for at least 12 months. The Government’s ambition is for the system to become operational from 2030.
This does not mean everybody with several pensions is about to have them automatically combined. The reforms apply to a particular part of the pension market, and the detailed implementation rules and safeguards are still being developed.
For somebody trying to understand several pensions today, the more immediate question is much simpler: What do I actually have?
Combining pensions doesn’t automatically make them better
It can be tempting to assume that having fewer pensions must be better. For some people, consolidation may make pensions easier to manage and review as part of their wider retirement planning. However, consolidation should not be the objective in itself.
Different pensions can have different charges, investment options and features. Some may contain valuable guarantees, protections or other benefits that could be lost or changed if the pension is transferred. Transferring a pension can also change the charges you pay and the investments available to you.
Not all pensions should be treated in the same way.
Defined benefit pensions and other pensions containing safeguarded benefits can involve different considerations and specialist regulatory requirements. Where safeguarded benefits worth more than £30,000 are being transferred or converted to provide flexible benefits, appropriate independent advice is generally required before the transaction can proceed.
Pension Pulse does not provide advice on transferring defined benefit pensions, although we can provide information to help you understand how they fit into your wider pension picture.
So rather than asking simply:
“Can I combine my pensions?”
A more useful question is:
“What would I gain or give up if I transferred any of these pensions?”
Understanding what you already have should come before deciding whether anything needs to move, because while there may be circumstances where consolidation is appropriate, there may also be very good reasons to leave a pension where it is.
Consolidation is not the objective. Clarity is.
Before considering a transfer, the starting point can be much simpler: Find out what pensions you have.
Once you have visibility on your pensions and understand what each one is worth, look at how they are invested, what they cost and whether any important benefits, guarantees or protections are attached to them. Then look at how those pensions fit together.
The value of doing this is not necessarily ending up with one pension instead of five. It is being able to see the complete picture.
Reviewing your pensions today
The Government’s proposed reforms are intended to reduce the number of small, dormant pension pots across the system over time.
The proposed 2030 timetable does not prevent you from reviewing your existing pensions now.
At Pension Pulse, we can help you build a clear picture of the pensions you already hold. If you choose to use our regulated financial advice service, we can assess your circumstances and, for pensions within the scope of our advice service, make a personal recommendation on whether transferring or consolidating them is suitable for you.
If you have lost contact with an old workplace or personal pension scheme, the Government’s free Pension Tracing Service can help you find the scheme’s contact details. It does not confirm whether you have a pension or tell you what it is worth.
Before transferring or consolidating any pension, it is important to understand what could change, what you could gain and what benefits, guarantees or protections you could give up.
A clearer pension starts with a clearer picture.
