5 reasons why moving pensions into a SIPP can make sense

The idea of a job for life isn’t quite what it used to be.

These days, people move jobs for all sorts of reasons - to progress their career, earn more, find greater flexibility, relocate or simply try something new.

In fact, research from Funding Circle, cited by the Department for Work and Pensions in June 2026, suggests the average worker will go through seven jobs in their lifetime.¹

And with each new job can come another workplace pension.

Over time, it’s easy to end up with pension pots spread across different providers. There’s nothing wrong with leaving them where they are, but bringing some together can make your retirement savings easier to manage.

One option is to move old defined contribution pensions into a Self-Invested Personal Pension, or SIPP.

A SIPP is a type of personal pension that can give you more control over how your money is invested.

Now of course, pension transfers can be complex - so make sure you read our transfer factsheet before making a decision. If you’re unsure, you might want to talk to one of Fidelity’s advisers or another authorised financial adviser.

Transferring won’t suit everyone, but if you’ve collected pension pots over the years, here are five reasons why bringing them together in a SIPP could make sense.

1. You can see your pensions in one place

This is probably the simplest reason to consolidate pensions. But it can also be one of the most useful.

If you’ve worked for several employers, you could have pension pots dotted around with different providers. That means different logins, statements, investment choices and charges to keep track of.

Move some of those old pensions into one SIPP and suddenly there’s less admin.

You can see more of your retirement savings in one place, check how your investments are doing and get a better idea of whether you’re on track.

It can also make life easier further down the line. After all, keeping tabs on a pension from a job you left last year is one thing. Remembering where you worked - and who ran the pension - 20 years from now may be another.

• Read: How to trace old pensions

2. You can have more say in where your money is invested

Many workplace and personal pensions are designed to keep things simple. They may offer a smaller range of investments, with a default fund for anyone who doesn’t want to choose their own. For lots of people, that works perfectly well.

A SIPP usually gives you more choice.

Depending on the provider, you may be able to invest in funds, shares, investment trusts and exchange-traded funds, or ETFs. That gives you more scope to choose investments that suit your goals, how long you have until retirement and how much risk you’re comfortable taking.

3. You can get a clearer view of what you’re paying

Pension charges aren’t always easy to compare, especially when your savings are spread across several providers.

Bringing pensions together can make it easier to see what you’re paying overall and how those costs compare. You may even pay less, depending on the charges on your existing pensions and the cost of the SIPP you move to.

But cheaper isn’t guaranteed. So, compare the full costs carefully, along with any valuable benefits you could lose, before you transfer.

• Read: Investment fees focus: why they matter

4. You may have more income options when you retire

We tend to spend a lot of time thinking about how to build a pension. It’s worth thinking about how you’ll eventually use it too.

Some pension schemes offer more options than others when it comes to taking an income. A SIPP may give you greater flexibility over how and when you take money, including the option to take money while leaving some of your pension invested for later.

That could be useful if retirement isn’t a single date in the diary.

Perhaps you plan to cut your hours first. Or take a little income from your pension while continuing to work. Your needs at 60 may look quite different from your needs at 70.

Having more options can help you adapt.

Just remember that taking money from a pension can have tax implications. Taking taxable income flexibly can also reduce how much you can contribute to defined contribution pensions in future, so it’s worth understanding the rules before making withdrawals.

• Read: What is pension drawdown? The basics

5. It could help if you’re close to a key income tax threshold

Once you have a SIPP, you can make new contributions to it as well as transferring old pensions in.

That can be particularly useful if your income is close to a key tax threshold. For example, once your adjusted net income goes over £100,000, your Personal Allowance starts to reduce. Making a pension contribution can reduce your adjusted net income and may help you keep more of that allowance.

A SIPP can also make it easy to make an extra contribution yourself - useful if a bonus or pay rise pushes your income higher than expected towards the end of the tax year.

Just remember, transferring an existing pension into a SIPP doesn’t generate extra tax relief. It’s any new contributions you make that may qualify, subject to your circumstances and pension allowances.

Do your homework before moving your pension

There are plenty of good reasons to bring pensions together. But there are equally good reasons to check what you already have before you do.

Some older pensions come with valuable benefits you could lose by transferring. These might include guaranteed annuity rates, protected retirement ages, guaranteed income or entitlement to more tax-free cash.

And defined benefit pensions - often called final salary pensions - are a different matter altogether. These can provide valuable guaranteed income, so transferring one needs particular care and, in some cases, regulated financial advice.

The aim isn’t to get every pension into one neat pot at any cost. It’s to make your retirement savings easier to understand, easier to manage and better suited to what you want them to do.

If a SIPP helps you do that, bringing some of your old pensions together could well be worth considering.

• Read: The tax benefits of a SIPP
• Read: 7 hidden benefits of financial advice
• Read: UK pensions dashboard: all your pensions in one place.

Source:

¹ Gov.uk - June 2026

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly recommend that you seek advice from one of Fidelity’s advisers or an authorised financial adviser of your choice.