Quick answer: A pension consolidation service combines your separate pots from old jobs into a single scheme — tracing them, contacting providers, and handling the transfers for you. Best if you have 3+ defined contribution pots and no valuable guarantees. Options range from free app-based (PensionBee, HL, AJ Bell) to full regulated advice (£500–£3,000).
What it does
- Traces old pensions you've lost track of
- Contacts each provider for current values, fees, exit penalties, guarantees
- Flags any pot that shouldn't be moved
- Coordinates and tracks the transfers
- Confirms the consolidated balance and investments
Why consolidate
- Lower combined fees (0.3–1%/year saving — often £1,000s over time)
- One platform for retirement planning and drawdown
- Wider investment choice than legacy workplace funds
- Stop losing track (~£26bn sits in unclaimed UK pensions)
Providers compared
| Provider | Annual fee | Best for |
|---|---|---|
| PensionBee | 0.50–0.95% | App-based, auto-tracing |
| AJ Bell | 0.25% capped | Mid-priced, free transfers |
| Vanguard SIPP | 0.15% capped | Cheapest, index funds |
| Independent adviser | £500–£3,000 one-off | Full scheme-by-scheme analysis |
When NOT to consolidate
- Any defined benefit pension (needs PTS advice)
- Pre-2001 personal pensions with guaranteed annuity rates (8–12% — keep them)
- An active workplace pension still getting employer contributions
- Exit penalties over 5% near retirement
Read next: Pension consolidation: should you combine?
Frequently asked questions
A pension consolidation service combines your separate pension pots from previous employers into a single pension scheme. The service handles tracing old pots, contacting providers, completing transfer paperwork, and managing the transfer-in process.
Some are: PensionBee handles consolidation as part of its £0 setup-fee offer (you pay a 0.50–0.95% annual fee on the consolidated pot). Hargreaves Lansdown and AJ Bell offer free transfer-in. Independent advisers charge £500-£3,000 to manage consolidation with full advice.
Yes if you have 3+ DC pension pots, want lower combined fees, and don't have valuable guarantees in your old schemes. No if you have DB pensions, pre-2001 personal pensions with GARs, or workplace schemes still receiving employer contributions.
Typically 4-8 weeks for the full consolidation of 3-5 DC pensions. Each individual transfer takes 2-4 weeks but the service runs them in parallel.
Technically yes, but regulated advice is legally required for DB pensions over £30,000. Most consolidation services only handle defined contribution pensions. For DB, you need a Pension Transfer Specialist.