Should I Combine My Pensions? A Simple Guide for Ireland

Combining your pensions simply means transferring multiple pension pots into one single plan.

Platforms like MyPension allow you to view and manage all your pensions in one place, making consolidation easier and more transparent.

Instead of tracking several providers, fees, and investments, everything is managed under one account.

1. Easier to Manage

Having one pension means less paperwork, fewer logins, and a clearer view of your retirement savings.

You can:

• Track performance in one place
• Make quicker decisions
• Stay more engaged with your retirement plan

2. Potentially Lower Fees

Each pension typically comes with its own management charges.

By combining pensions in Ireland, you may

• Reduce overall fees
• Improve long-term growth
• Save you thousands over time

Even small fee differences can significantly impact your final pension value over decades.

3. Better Investment Control

When your pensions are scattered, your investments may be inconsistent.

Combining them allows you to:

• Align your investment strategy
• Adjust risk levels more effectively
• Make informed long-term decisions

4. Avoid Losing Track of Old Pensions

Many people lose track of pensions from previous jobs.

Bringing everything together ensures:

• No pension is forgotten
• Your full retirement picture is visible

While combining pensions can be beneficial, it’s not always the best move.

1. You Could Lose Valuable Benefits

Some older pensions may include:

• Guaranteed annuity rates
• Lower legacy fees
• Protected retirement ages

These benefits can be difficult—or impossible—to replace if transferred.

2. Exit Fees or Penalties

Some pension providers charge fees for transferring out.

Always check:

• Exit penalties
• Transfer conditions
• Any loss of bonuses

3. Defined Benefit (Final Salary) Pensions

Defined benefit pensions are typically very valuable and should rarely be transferred without expert advice.

They often provide:

• Guaranteed income for life
• Inflation-linked benefits
• Spouse/dependant protection

4. Flexibility of Multiple Pots

Keeping pensions separate can sometimes offer flexibility.

For example:

• You may be able to access different pensions at different times
• This could help with tax planning or phased retirement

Before making any decision, ask yourself:

• What fees am I currently paying?
• Are there any guarantees or special benefits?
• Will I lose flexibility by combining?
• What are the tax implications?

Also remember:
If you have multiple workplace pensions, each scheme may have its own rules—even if you don’t combine them.

Pensions in Ireland come with specific tax rules, especially when it comes to inheritance.

For example:

• Spouses or civil partners are generally exempt from Capital Acquisitions Tax (CAT)
• Other beneficiaries may be subject to tax depending on thresholds

The way your pension is structured (e.g. ARF, annuity, or lump sum) will affect what happens after death.

There’s no one-size-fits-all answer.

You might benefit from combining if:

• You have multiple small pension pots
• You want simpler management
• You’re paying high fees across different plans

You may want to keep them separate if:

• Your pensions include valuable guarantees
• You want flexibility at retirement
• Exit fees outweigh the benefits

With MyPension, you can:

• Find and track all your pensions
• See everything in one dashboard
• Decide whether combining makes sense for you

It gives you the clarity you need to take control of your retirement.

Combining your pensions can be a smart move—but only if it aligns with your long-term goals.

The key is understanding:

• What you currently have
• What you might gain
• What you could lose

Contact us today to review your options, understand your pensions, and determine whether combining them is the right choice for you.