How Many Pensions Can I Have?
Your pension is the cornerstone of your retirement savings and is crucial in creating financial stability when you stop working.
So it’s no wonder a common question for those planning their future is, “how many pensions can I have?”
While there is no limit to the number of pensions you can have, there are some important things to consider.
Below we look at the possibility of having multiple pensions, the rules and regulations you need to be aware of, and other essentials to help you manage them.
Types of pensions
There is more than one type of pension that can provide income in retirement. Each has its own rules and eligibility.
The three main types are:
State Pension
The State Pension is paid by the UK government once you reach State Pension age. Eligibility and the amount you receive are based on National Insurance contributions.
You need at least 10 full qualifying years for any State Pension and 35 years for the maximum.
Workplace pensions
Workplace pension schemes, also known as occupational schemes, are set up by employers.
In general there are two main types of workplace pensions:
Defined contribution pensions
Most modern workplace schemes are defined contribution. A percentage of your salary is paid in (usually with an employer contribution), invested to grow over time, and typically accessible from age 55 (rising to 57 from 2028 depending on rules).
Defined benefit pensions
Defined benefit schemes (final salary or career average) are rarer now and pay a guaranteed income for life based on earnings and service.
Private pensions
Private (personal) pensions are arranged by you. They’re usually defined contribution and include:
- Stakeholder pensions
- Self-invested personal pensions (SIPPs)
Stakeholder pensions must meet government criteria. Check your provider is registered with the Pensions Regulator or Financial Conduct Authority.
How many pensions can I have?
There’s no limit to how many pensions you can set up — and having multiple is common.
According to research by LV, UK workers change jobs frequently, often leaving several workplace pensions behind.
It’s not just workplace schemes; stakeholder and personal pensions also have no limit to the number you can hold or pay into. State Pension is the exception.
Can I contribute to multiple pensions?
You can pay into more than one scheme at the same time.
However, UK tax relief is capped by allowances across all your pensions, not per pension.
Your allowance can be used on a single pension or spread across several.
Annual pension allowance
Your annual allowance is the amount you can save each tax year (6 April to 5 April).
The current allowance is £60,000 (2023/24) across all private and workplace pensions. Exceeding it can create a tax charge payable by you or via scheme pays.
Lifetime pension allowance
The lifetime allowance was £1,073,100. A charge applied before 6 April 2023 (55% on lump sums, 25% otherwise). The charge ended from 6 April 2023, and the LTA is being abolished from 2024/25.
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How can I find out how many pensions I have?
The Association of British Insurers estimates around 1.6 million unclaimed pots worth £19.4bn. The Department for Work and Pensions projects up to 50 million dormant or lost pots by 2050.
Keeping track is vital so you don’t miss out on savings.
Use the UK Government’s free Pension Tracing Service to find administrator contact details, then ask providers to confirm if you have a pot and its value.
Should you consolidate your pensions into one?
Holding many small pots can mean higher fees and admin. Consolidation moves two or more pensions into one pot and can offer benefits like:
- Potentially lower overall fees
- Simpler paperwork and management
- Easier performance tracking
It’s not always the right choice — some schemes have valuable guarantees or benefits you could lose. Read about the pension consolidation process and seek advice before transferring.
Retirement planning with Holborn Assets
Pensions play a crucial role in your retirement plan, providing income to cover your lifestyle costs when you stop working.
Professional advice can help you make informed decisions and stay on track.
Our pension specialists explain your options and create tailored plans aligned to your goals.
Start building toward a more secure future. Book a free, no-obligation meeting today and learn how we can help.
