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Increasingly, UK savers are losing track of their pensions. In October 2024, research by Pensions UK found that the total value of lost pension pots had risen by 60% since 2018.

Losing track of your pensions can be costly. Across the 3.3 million pension pots considered lost, the average fund value is £9,470 – rising to £13,620 for those aged 55 to 75.

By consolidating multiple workplace and private pensions into fewer schemes – or even just one – you could make it easier to track and manage your retirement savings. Additionally, bringing multiple pots together may help you grow your funds more efficiently and reduce your administration fees.

Generally, you can consolidate any defined contribution (DC) schemes, regardless of whether they are workplace or private pensions. However, pension consolidation may not always be appropriate, with a variety of fees, rules, and the potential loss of benefits to consider.

Read on to discover three reasons why pension consolidation could boost your retirement income, and when consolidation might not be appropriate.

1. It’s often easier to manage your pensions and calculate whether you’re on track

By bringing more of your pension pots together under one provider with a single set of rules, features, and benefits, you may be able to simplify your pension management.

According to an August 2022 study from Standard Life, the average person in the UK changes jobs every five years. As a result, people often accumulate multiple workplace pensions throughout their working life – making it easy to lose track over the years.

With fewer pension providers, policy details, and fund values to keep track of, you can reduce the administrative burden of managing multiple pensions. This helps you maintain a clear view of your total retirement funds and monitor how well your investments are performing, while reducing the risk of losing money in forgotten pots.

With a greater understanding of how much you currently have, you can more easily determine how much you need to grow your funds to achieve your retirement goals.

2. Your money could have higher growth potential if it’s all invested in one place

Generally, investment options vary from one pension to another. While some older pensions may be limited to investment funds managed by the provider, others could offer a wider choice and more flexibility for you to decide where your pension is invested.

Some schemes may perform better than others, delivering a higher rate of return on your pension savings. Additionally, having a larger pot may present more investment opportunities, with some requiring a minimum investment size.

Plus, since your investment returns compound over time, consolidating your pensions could enable them to grow more quickly.

Indeed, by moving more of your funds into a pension that offers potentially higher returns, you could accelerate your pension’s growth. According to HM Treasury in May 2025, the average earner could boost their retirement savings by £6,000 through consolidating their funds.

3. You might pay reduced fees

When you have several pension pots, you could unnecessarily pay duplicate fees. Each scheme generally comes with varying administrative charges, ranging from less than 0.5% to more than 1% of your fund. Typically, older pensions are likely to have higher fees.

While individual fees may sometimes appear nominal, the amount you’re charged is likely to grow as time passes and your fund value increases. Considering you could be paying such fees across multiple schemes and over several years, the total charges paid over your lifetime can be significant.

However, some schemes may also charge an exit fee. For pensions set up before 31 March 2017, you could be charged up to 10% of your fund. If you set up your scheme after this date, or are aged 55 or over, exit fees are capped at 1%.

As a result, consolidating your pension pots can boost your retirement savings by reducing your costs. However, choosing which plan to transfer your funds into requires careful consideration.

The benefits of pension consolidation depend on your circumstances

Consolidation isn’t appropriate for everyone. In some cases, partial consolidation can be a good option, whereby you bring some of your funds together while leaving other pots separate. For some people, consolidation might not be necessary at all.

Smaller pension pots

If you have pots worth less than £10,000 and plan to withdraw from them before retirement, it could be worth leaving them separate from your other funds because of the “small pots exemption”.

As of 2025/26, you can generally draw down up to three of these pots in your lifetime without triggering the Money Purchase Annual Allowance (MPAA). This allowance permanently reduces the amount you can pay into your pension tax-efficiently from £60,000 to £10,000 a year.

Defined benefit schemes

If you have a defined benefit (DB) pension, consolidation is unlikely to be a sensible option. Unlike DC schemes, DB pensions generally offer a guaranteed retirement income based on your salary and years of service with your employer.

In fact, you may be required to seek advice from a qualified financial adviser before transferring funds out of a DB scheme that contains over £30,000.

Your current workplace pension

If you and your employer are still contributing to a workplace pension, it may be worth keeping that scheme open. By closing it to consolidate with other funds, you’ll likely surrender your employer contributions, which may prove significant over time.

Protecting scheme benefits

In some cases, your pension schemes may offer valuable guarantees or benefits that are more common with older schemes, such as:

• Guaranteed annuity rates
• The ability to access your funds before age 55, although this is rare
• Flexible ways to take retirement or death benefits.

If it’s not possible to consolidate your other pensions into your preferred scheme – for example, if your employer is contributing to a different pot – it might be worth leaving your funds where they are.

It’s often worth seeking advice before consolidating

While pension consolidation may deliver a range of administrative and financial benefits, creating a strategy for bringing multiple pots together can be complex.

There are a variety of rules, fees, benefits, investment opportunities, and personal factors to consider before consolidating. In fact, in September 2025 IFA Magazine reported that poorly informed pension transfers made in the year to 30 June 2025 may have cost savers £1.7 billion.

By seeking guidance from a qualified financial planner, you could help determine the most effective consolidation strategy for your needs and circumstances. Get in touch to learn more about how we can support you in boosting your retirement funds.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Workplace pensions are regulated by The Pensions Regulator.

The Financial Conduct Authority does not regulate tax planning.

Retiring should be a milestone you look forward to. It’s a chance to spend your time how you want and do the things you’ve been putting off because work has been in the way. Yet, sadly, research shows UK adults associate spending their retirement savings with negative words, and it could prevent them from enjoying the next chapter of their life.

According to an August 2025 article from Money Marketing, UK adults associate anxiety (26%), fear (18%), and guilt (15%) with spending their pension and other assets they’ve built up for retirement.

Positive emotions, such as excitement (15%), security (17%), and relief (10%), were less commonly associated with depleting assets in retirement.

Anxiety could hold back your retirement plans, even if you have enough to tick off items on your bucket list and live comfortably.

Working with your financial planner to create a cashflow model could help you turn anxiety into excitement.

A cashflow model can help you visualise your wealth

For most retirees, their pension provides their main source of income once they give up work. You’re also likely to benefit from the State Pension and have other assets you might want to draw on, such as savings, investments, or property.

Bringing together the value of all these assets and then calculating what that means for your income and financial security throughout your retirement can seem like a daunting task. This is where a cashflow model can be valuable.

A cashflow model is a powerful tool that lets you see how your wealth might change over your lifetime depending on the decisions you make and factors outside of your control.

You start by adding information about your finances now, such as the value of each asset and your expenditure.

With this foundation, the cashflow model can project how your wealth might change. So, you could see how the value of your pension will change during your working life if it delivers average annual returns of 5%. Or how your outgoings might rise to account for an annual inflation rate of 3%.

It can be particularly useful when you’re planning for retirement, as it can demonstrate if you have “enough” based on your plans, like when you want to retire and your expected income.

It’s important to note that the outcomes of a cashflow model cannot be guaranteed, but it can provide useful information so you’re able to make informed decisions. To ensure your cashflow model continues to reflect your circumstances and long-term goals, it’s also essential that you update it regularly with your financial planner.

Calculating a sustainable income could ease retirement anxiety

It’s understandable why people feel anxiety and fear about spending their retirement savings. After all, if you spend too much too soon, you could find yourself in a financially vulnerable position.

The cashflow model can project how your wealth might change. For instance, you could see:

• If you can maintain your current lifestyle with your pension savings
• Whether you’re in a position to retire before you reach State Pension Age
• Whether you’d potentially run out of money if you increased your annual pension withdrawal by £10,000.

Not only can a cashflow model help you understand the potential effect of your decisions, but it can also be useful when assessing how outside factors might affect your finances.

For example, you might change the assumptions the cashflow model uses to see how:

• You would cope if you faced an unexpected bill in retirement
• A period of high inflation might deplete your assets at a faster rate
• A market downturn would affect your investments and long-term finances.

A cashflow model can help you identify potential gaps in your retirement finances and take steps to bridge them. It could help you feel more positive about taking a step back from work and spending your pension.

Calculating the effect of gifting assets and the value of your estate could ease guilt

Interestingly, the Money Marketing article noted that 15% of UK adults feel guilty about spending their retirement savings.

If you find it difficult to spend money on yourself, a financial plan could help you identify what your priorities are and give you the confidence to pursue them.

For some people, supporting loved ones will be a priority and help ease any feelings of guilt. Again, a cashflow model can be useful.

If you want to gift assets to your loved ones during your lifetime, you can input this into your cashflow model to see how it might affect your long-term financial security. For example, if you want to gift a house deposit to your grandchild, you can use a cashflow model to assess the effect of gifting a lump sum now.

You might also be thinking about what legacy you’ll leave behind for loved ones, and how it could provide financial support when you’re gone. A cashflow model could help you calculate the value of your estate in the future, so you’re able to create an effective estate plan.

Contact us to talk about your cashflow plan

If you’d like to review or create a cashflow plan, please contact us.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The Financial Conduct Authority does not regulate cashflow modelling or estate planning.

When markets experience volatility, even the most level-headed investor can let their emotions or other influences affect their decisions. Read on to find out why volatility can trigger financial biases and how these might affect you.

For the average investor, it’s important to take a long-term approach. While returns cannot be guaranteed, investing over a longer time frame gives markets more time to smooth out their natural peaks and troughs.

Headlines about market crashes or sudden rallies can set you on edge even if you’re usually calm.

Volatility affects investors because uncertainty triggers an emotional response. When you’re thinking logically, you might note that markets have historically recovered from downturns. However, it’s easy for worries to creep in. You might ask yourself: “What if the market doesn’t recover this time?”

As investments are typically tied to personal goals, these initial worries can spiral, allowing emotions to drive your decisions.

4 types of bias that could affect your investment decisions during volatility

1. Herd mentality

When there’s uncertainty in the market, it’s natural to look at what other people are doing. It can often seem like everyone else is taking the same approach. This can lead to a bias known as “herd mentality”, where you’re tempted to follow the crowd.

It might feel like there’s safety in numbers, but it’s important to avoid making decisions that aren’t right for you just because others are doing the same.

2. Loss aversion

No one wants to see the value of their investments fall, and psychological research suggests that investors fear losses more than they enjoy gains. So, to avoid or reduce losses, investors might sell because they’re worried markets will fall further.

However, this may lead to investors turning paper losses into actual ones. In contrast, sticking to your long-term plan and being patient could mean you benefit from a market recovery.

3. Recency bias

The theory behind recency bias argues that investors place too much emphasis on recent events. So, you might decide that a dip in the market is actually part of a long-term trend, even if the data suggests otherwise.

Taking a step back to look at the bigger picture could help you keep recency bias in check.

4. Confirmation bias

Confirmation bias refers to the tendency of investors to seek out information that supports their existing views.

If you’re worried about markets falling, confirmation bias can lead you to dismiss positive data in favour of negative information. This bias can intensify your fears and lead you to make decisions based on only a small portion of the available data.

Practical ways to reduce the effect biases have on your investment decisions

Emotions and bias interfering with your logical decision-making is normal, but that doesn’t mean it’s harmless. Successful investors manage short-term market movements so they can stick to their long-term plan and adjust when it suits them.

Here are some strategies you could try next time you’re tempted to respond to market volatility.

1. Review your financial plan

Before you make any changes to your investments or financial plan, take some time to revisit it. Your plan should centre on your goals and circumstances, so revisiting it could remind you why you chose your strategy and why sticking with it could be beneficial.

2. Reduce your exposure to the news

It can be hard to escape headlines and constant updates, but limiting your exposure might be useful. You may reduce how frequently you check the news, log on to social media, or even monitor the performance of your portfolio.

Be mindful of the source of the information as well – is the source likely to present changes to the market negatively or exaggerate the effects?

3. Look at the historical data

Investment returns cannot be guaranteed, but looking at past performance might be a useful exercise if you’re tempted to make knee-jerk decisions. Historically, markets have recovered and grown over the long term, even after sharp drops.

4. Talk to your financial planner

Finally, your financial planner can offer valuable advice as they understand your circumstances and goals. Talking through the options could highlight where bias might be influencing your decisions and offer a different perspective that allows you to remain focused on your long-term goals.

Contact us to talk about your investments

If you’d like to talk about your existing investment portfolio or would like to understand how investing could fit into your overall financial plan, please get in touch.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Investment returns significantly affect what you can achieve in your long-term plans. Naturally, you want the highest possible returns, but research shows many investors have “unrealistic” expectations.

According to a July 2025 article in Financial Planning Today, the average UK investor expects annual investment returns of 9.2%. With 91% of investors stating they have a low or moderate risk tolerance, this expectation could lead to disappointment.

Anticipating high investment returns that aren’t realistic could be problematic for several reasons, including these two.

1. You may make decisions based on inaccurate information

If you’re making decisions and plans based on expected investment returns that are unrealistic, you may make choices that aren’t right for you. For example, on the expectation of large returns, you might decide to reduce pension contributions, and if the expected returns don’t materialise, you could face challenges when you retire.

2. You might take more investment risk

In a bid to secure the higher returns you’re seeking, you might be tempted to take more risk than is appropriate for you. While this has the potential to deliver greater returns, you also increase the likelihood of losses, which could affect both your short- and long-term finances.

What plays a role in your investment returns?

So, if 9.2% is an unrealistic expectation for an investor, what’s realistic?

Numerous factors affect the returns delivered, including some that are outside of your control. However, to give you an idea, in July 2025, an article from The Motley Fool noted that an average Stocks and Shares ISA delivered annual returns of 6.19% between 2019 and the start of 2025 – 3% less than many investors expect.

Among the factors that affect the outcome that are in your control are investment risk and time frame.

As mentioned above, typically, the greater the investment risk, the higher the potential returns. It’s important to understand your risk profile and what an appropriate level of risk is for you. Taking risks might seem exciting, but it could harm your long-term finances.

In addition, your investment time frame will play a role in returns. Markets experience peaks and troughs, and a long-term investment horizon allows market fluctuations to smooth out, increasing the likelihood of positive returns. This is why it’s often a good idea to invest with a minimum time frame of five years.

Outside of your control, factors like inflation, the availability of finance for businesses, or economic growth could affect investment performance.

Working with a financial planner can help you choose a risk profile that suits your goals and financial circumstances, and estimate realistic long-term investment returns.

A cash flow model could help you understand how investments fit into your financial plan

Even with realistic return expectations, it can be difficult to see how investments will impact your overall financial plan.

A cashflow model is a powerful tool that we can create as your financial planner. It will bring together all your assets and show how the value might change over time depending on the decisions you make and factors outside of your control.

So, when you’re reviewing investments, you might use a cashflow model to help you answer questions like:

• If my investments deliver a return of 5% until I’m 65, will I have enough for retirement?
• How could stock market volatility affect my financial plan?
• How much should I invest to reach my long-term goals?

It’s important to note that the results of a cashflow model cannot be guaranteed, but they can provide valuable insight that allows you to make informed decisions.

Please contact us

Please get in touch to talk about your investment portfolio, whether you want to understand how your current investments could fit into your long-term plan, or you’re ready to invest for the first time.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate cashflow modelling.

As 6 – 10 October 2025 marks the International Week of Happiness at Work, it’s the perfect time to reflect on a simple yet valuable truth:

Your wellbeing at work is not just a perk.

Rather, it’s an important part of modern working life and something that should be a priority. For many of us, work takes over a significant portion of our lives. It stands to reason, then, that the state of your mental and physical health in the workplace can have a direct impact on your overall happiness.

The International Week of Happiness at Work serves as a reminder that taking a proactive approach to your work life can lead to a more fulfilling and productive career. Here’s how to do just that.

Finding the right balance at work can make or break your experience

A recent study by CIPD, the “Good Work Index 2025”, revealed some sobering statistics that highlight the importance of wellbeing at work. Indeed, according to the research:

• 1 in 4 workers felt their job had a negative effect on both their physical and mental health
• Employees who have positive mental health at work have a 93% work satisfaction rate
• Of those who experienced particularly poor mental health, 34% are more likely to leave their jobs in the next 12 months.

Mental and physical health conditions have been increasing in the workplace, including anxiety, sleep disorders, musculoskeletal problems, and depression.

These statistics are not just numbers. They represent millions of people struggling with stress, burnout, and a lack of support in the workplace.

Fortunately, you’re not helpless in the face of these challenges. While employers and businesses have a vital role to play, you can also take control of your own work experience.

Focus on your physical and mental health

While an employer can provide benefits and support, it’s up to you to engage with them. If they’re on offer, be sure to take advantage of health checks, employee assistance programmes, or company-sponsored wellness activities.

Managing stress is also crucial, as it can play a major role in your physical and mental health. Ways to mitigate stress at work can include:

• Setting boundaries on working hours
• Taking regular breaks
• Not allowing work to encroach on your personal time.

These are simple steps, but they can make a significant difference in your ability to cope with work-related stress.

Build the core of your day to support good work

Remember, a “good job” is one that works for you, with a realistic workload, clear objectives, and opportunities for autonomy.

If your role feels overwhelming or you lack control over your daily tasks, it’s important to have a frank conversation with your manager. If possible, work with them to re-evaluate your responsibilities, set more manageable targets, and seek out opportunities to develop your skills.

When you feel a sense of purpose and a match between your skills and your work, your job satisfaction is likely to increase.

Work out your values and principles

Research shows that your wellbeing at work is often tied to whether you feel your personal values align with those of the business.

When you feel that your company matches your ethics, it can foster a sense of psychological safety and pride. If you’re unsure about your company’s values, then pay attention to how its leaders behave and how the organisation at large treats its employees.

To help strengthen your connection to the company’s wider purpose, try to find opportunities to engage in volunteer work through the business, or help support the company’s corporate social responsibility initiatives.

Build your tribe for social support

Strong, positive relationships with your colleagues and managers can be a cornerstone of workplace happiness. Indeed, the CIPD study found that a poor relationship with your line manager can be linked to an unhealthy work environment, but ratings of line managers have improved overall since 2023.

If this is something you struggle with at work, you could:

• Seek out additional social connections in the office
• Engage in open and respectful dialogue with your manager
• Take on a mentor for professional development and further support.

By building a supportive network, you’re more likely to develop the tools needed to help navigate challenges, share ideas, and foster a sense of belonging.

Make sound lifestyle choices outside of work

What happens outside of work is just as important as what happens inside your professional life. This can encompass healthy habits such as physical activity and healthy eating, but can also include your financial wellbeing.

Ensure you’re aware of and taking advantage of any benefits your employer offers that could help you maintain your physical, mental, and financial health. While each company is different, many businesses offer benefits such as discounted gym memberships, mental health support, and even financial planning resources.

Remember, a healthy and secure personal life can provide a crucial buffer against workplace stress, making you more resilient and better able to cope with any obstacles life throws your way.

Wellbeing at work starts with you

While the statistics may seem daunting, the message behind International Week of Happiness at Work is clear. You have the power to improve your wellbeing, both at work and at home.

By advocating for your health, finding purpose in your work, and building strong relationships, you could move from coping to thriving in your professional life.

For further financial wellbeing support, get in touch with us for guidance, advice, and a path forward.

Please note:

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Almost half of Brits doubt the State Pension will exist by the time they retire, according to a PensionsAge report published in July 2025. While scrapping the State Pension may not be on the cards yet, there are suggestions that significant changes, which may affect your retirement, could be introduced.

In 2025/26, the full new State Pension is £230.25 a week and can be claimed from age 66. Even though the State Pension may not be enough to cover all your retirement expenses, it often provides a reliable base income. So, changes could affect your long-term financial security.

Spending on the State Pension is estimated to reach 7.7% of GDP by the 2070s

The State Pension is the second-largest item on the government budget after health, and the cost of maintaining it has soared.

According to a July 2025 report from the Office for Budget Responsibility (OBR), spending on the State Pension has increased from 2% of GDP in the mid-20th century to around 5% today, the equivalent of £138 billion. By the early 2070s, the OBR estimates the cost of the State Pension will reach 7.7% of GDP.

Two main reasons are driving the cost of the State Pension, and the solution to them could present challenges when planning your retirement.

1. Shifting demographics could lead to the State Pension Age rising

The number of adults below the State Pension Age compared to those claiming the State Pension has fallen. In the early 1970s, there were around 3.4 adults of working age for every pensioner, which fell to 3.2 in the 2010s. Due to rising life expectancy, the OBR expects the ratio to fall even further to 2.7 by the early 2070s.

As a result, there’s speculation that the Labour government could increase the State Pension Age to reduce the cost. In August 2025, the Independent reported that the State Pension Age could rise as high as 80 over the long term unless major changes are made.

2. High inflation could lead to the triple lock being reviewed

The triple lock was introduced in 2010 and commits to the State Pension rising by the highest of three measures – the increase in average earnings, inflation as measured by the Consumer Prices Index, or 2.5% – each year.

This annual rise may be important for pensioners as it helps to preserve the spending power of their State Pension. However, the triple lock could be reviewed or even scrapped as the OBR report suggests high inflation and volatility have led to it costing around three times more than initial expectations.

A robust financial plan could help you overcome potential State Pension changes

It’s important to note that the Labour government hasn’t announced any changes to the State Pension yet. However, the speculation highlights why a robust retirement plan is essential.

By taking other steps to secure your retirement, you could continue to work towards your later-life goals and be confident about your long-term financial security, even if the State Pension Age or triple lock are reviewed.

Your financial planner could help you assess your options if you’re concerned about the potential changes.

You may find that you’re already in a position to mitigate the potential effects of State Pension changes, which could ease your mind. Alternatively, you might discover a possible gap in your finances. The good news is that by identifying the gap now, you could make changes to bridge it, such as increasing your pension contributions, delaying your retirement date, or reducing your expected retirement income.

Changes to the State Pension are likely to happen over the medium or long term. In the past, when the State Pension Age increased, it was over a period of several years.

So, the potential changes may not affect you, but they could significantly affect the long-term financial security of younger generations.

Speaking to your children and grandchildren about the importance of saving for their retirement could lead to them engaging with their long-term plan and potentially mean they’re more comfortable later in life.

You might also want to offer financial support to secure their retirement, such as making contributions to their pension now or leaving them an inheritance, which we could work with you to make part of your financial or estate plan.

Get in touch to talk about your retirement plan

Regular reviews with your financial planner could help ensure your long-term plans continue to reflect government changes, including those relating to the State Pension. If you have questions about your retirement or would like to update your plan, please contact us.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The Financial Conduct Authority does not regulate estate planning.