Retirement savers struggle to consolidate their pension funds

“It’s worrying that so many people have tried to consolidate their funds and failed and so many people don’t know how to go about it.”

More than one in 10 (11%) savers with multiple plans have tried to consolidate their funds and failed while nearly two in five (38%) admit they don’t know how to consolidate their pensions into one fund, according to the study.

Only one in five (19%) of respondents in the iSIPP study say they have only ever had one pension fund, while 19% say they have successfully consolidated pension funds in the past. More than half (52%) of people with multiple pension plans have not attempted to consolidate.

Young savers are more likely to have consolidated their funds successfully – and more likely to have tried and failed. Around 26% of under-35s transferred their pensions into a single pot while 13% failed. Of those over 55, only 17% have consolidated funds while 5% have tried and failed.

iSIPP Managing Director Hrishi Kulkarni said: “It is worrying that so many people have tried to consolidate their funds and failed and so many people don’t know how to go about it.

“Consolidating all existing pensions into iSIPP will provide them with a single online pension account, simple and transparent fees to pay and comprehensive monitoring of investment performance, helping them to make more informed decisions tailored to their own financial situation and their retirement goals.