How Many Pensions Can You Have?

In the UK, there is no legal limit to how many pensions you can have. Many people accumulate multiple pensions throughout their working life, especially if they change jobs frequently. You can have:

1. One State Pension (provided by the government).

2. Multiple Workplace Pensions (from different employers).

3. Multiple Personal Pensions (including SIPPs and stakeholder pensions).

Having several pensions can provide greater financial security but may also make it harder to manage your retirement savings effectively. This guide explains how multiple pensions work, the pros and cons, and whether you should consider combining them.

How Many Workplace Pensions Can You Have?

There is no limit to how many workplace pensions you can have. Each time you change jobs, your employer must enrol you into a new workplace pension if you meet the eligibility criteria:

• Aged 22 to State Pension age.

• Earning at least £10,000 per year.

• Working in the UK.

Your previous workplace pensions remain separate, and you can leave them where they are, transfer them, or combine them into one plan.

How Many Personal Pensions Can You Have?

You can also have multiple personal pensions, including:

• Stakeholder Pensions – Low-cost, flexible personal pensions.

• Self-Invested Personal Pensions (SIPPs) – Allow greater control over investments.

• Standard Private Pensions – Offered by various financial providers.

You can contribute to multiple personal pensions and workplace pensions at the same time, but tax relief rules apply.

Can You Pay Into More Than One Pension at the Same Time?

Yes, you can contribute to multiple pensions at once, including:

• Your workplace pension.

• A SIPP or private pension for additional savings.

• Pensions from previous jobs that are still active.

However, you can only receive tax relief on pension contributions up to 100% of your earnings or £60,000 per year (whichever is lower).

If you earn over £260,000 per year, your annual allowance may be reduced under the tapered annual allowance rules.

Should You Combine Your Pensions?

If you have several pensions, managing them separately can be complicated. Combining pensions into one plan can make it easier to:

• Track your total retirement savings.

• Reduce fees (some older pensions have high charges).

• Simplify withdrawals in retirement.

However, before consolidating pensions, check:

• If there are exit fees or loss of benefits (some older pensions have guaranteed annuities).

• Whether transferring makes sense for your investment strategy and retirement plans.

What Happens to Multiple Pensions at Retirement?

When you retire, you can withdraw from multiple pensions, but each has different rules:

1. State Pension – Paid from State Pension age (currently 66, rising to 67 by 2028).

2. Workplace & Personal Pensions – Can be accessed from age 55 (rising to 57 in 2028).

3. Pension Drawdown & Annuities – You can choose to keep funds invested, withdraw lump sums, or buy an annuity.

Final Thoughts

There is no limit to how many pensions you can have, and having multiple pensions is common due to job changes. While keeping track of several pensions can be challenging, combining them may help simplify retirement planning.

If you are unsure whether to consolidate your pensions, speaking to a financial adviser can help you make the best decision based on your savings, fees, and retirement goals.