One in 3 over 55s with a private pensions have more than one pension pot but this group are the least likely to consider consolidating multiple pensions, according to new research.
Older savers aged 55 and above were more likely to have multiple private pension pots (33% v 31% of all UK adults with a private pension).
However only 31% of over 55s have considered merging pension pots compared to 58% of all those with private pensions and 63% of those in the 35-54 age group.
Research from Canada Life found that the average UK worker will have had 11 jobs by the time they look to access their pensions and many will have accrued several pensions.
Number of Pension Pots
|
Average |
18-34 |
35-54 |
55+ |
|
|
Have more than one pot |
31% |
23% |
36% |
33% |
|
Have three or more pots |
10% |
4% |
14% |
11% |
|
Have considered consolidating their multiple pots |
58% |
72% |
63% |
31% |
Base: UK adults with a private pension
Only 23% of younger savers aged 18-34 have multiple pensions pots but this figure steadily rises with 36% of 35-54-year-olds revealing they have more than one pot.
Andrew Tully, technical director, Canada Life, said the figures indicated that many older pension savers who could benefit from consolidating pension pots were failing to do so.
He said while there were pros and cons to consider, charges could be lower and more modern pension schemes could be more flexible. However guaranteed annuity rates and enhanced tax free cash could be lost so regulated advice was key.
Research was conducted among 2,000 UK adults (including 1,222 with a private pension) in August 2019.