Who Really Benefits When You Consolidate Your Pensions? (Hint: Not Always You)

You’ve probably seen the ads:

“Combine your pensions into one easy pot.”

“One platform, one login.”

“Simplify your retirement.”

Sounds sensible, right?

But here’s the thing: those ads usually come from providers who want your money on their platform — because that’s how they get paid.

The truth? Pension consolidation isn’t always the smart move. In fact, in some cases, it can do more harm than good.

Here are just a few things to watch out for:

• Protected tax-free cash – Some older pensions let you take more than 25% tax-free. Transfer without checking, and you could lose that perk forever.

• Guaranteed annuity rates – Rare but incredibly valuable. Give them up unknowingly, and it could cost you thousands in future income.

• Exit penalties and investment guarantees – Some pensions charge to leave or include benefits you can't get back once transferred.

• Access ages, drawdown flexibility and small pots – One pot isn’t always more flexible. In fact, it can limit your options.

• Tempting tech and “low fees” – That slick app might come with hidden costs. Do you really need all that functionality?

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And this is important — pension consolidation is a common tactic used by scammers. If you’re dealing with someone unregulated, you could lose everything.

To be clear — consolidation can be the right move. Lower fees, better investments, simpler admin — all real benefits, but you hear those points all the time. It’s equally important to know what you might lose.

Paid just for pension consolidation advice? - You may have got a bad deal.

Some people spend thousands for a simple yes or no — with no proper conversation about their life, goals, or retirement options. That’s not financial planning. That’s admin.

I set up Willowhurst Financial Planning to take a different approach.

Yes, we’ll look at whether consolidation is right — but more importantly, we’ll explore:

✔ Are you financially on track?

✔ What your ideal life looks like now and in the future.

✔ How to get there (without stress or confusion)

✔ Being prepared in case life takes a different course.

If you're ready for a proper conversation —I'm here to help.

👉 www.willowhurst.co.uk👉James@willowhurst.co.uk👉01372 613030

This blog/post is for information purposes and does not constitute financial advice, which should be based on your individual circumstances. A pension is a long-term investment and the value is not guaranteed. Any advice or considerations are personal to each individual’s circumstances.