Should I combine my two pensions?

6 March 2019


I have a self-invested personal pension (Sipp) with LV=, which has lost money in the past 12 months, despite paying in £100 a month. I also have an Aviva pension through a previous employer, which has gained little over the past year as I no longer pay into it. Should I amalgamate the two to save management fees?



While amalgamating pensions can be a good idea in terms of saving on fees and reducing complexity, you need to carefully consider it and take advice if necessary.

By speaking to an adviser, you can get a clearer idea of what you are being charged, so you can make a more informed decision. For instance, you mention you are invested in a Sipp. These products often have access to a wider range of investments than you would get in a standard pension. Are you using this flexibility? If not, you may be paying more than you need to. However, it is not just a case of comparing the fees your providers charge – there are other factors to be taken into account. To begin with, the provider you choose to leave may charge you a fee for transferring your funds so it is worth checking this.

There are also other issues to consider. While it is never good to see the value of your pension decrease in any one year, it is important to note that you are invested for the long term and that from time to time your investments will experience some degree of volatility – it is important not to make decisions based on one year’s investment performance. However, it is worth speaking to an adviser to review whether the investment strategies you are invested in remain suitable for your needs. You can find an adviser through

Helen Morrissey is a corporate PR specialist at Royal London