To Consolidate Pensions or Not? The Modern Professionals' Challenge

Uh Oh, you've Changed Jobs Multiple Times, Now What Do You Do With Your Pensions?

I meet a lot of people in their 30s and 40s who've done what they're supposed to do to advance in modern Ireland; changed jobs to advance their careers, earned good money, contributed to their pensions. Job hopping is the done thing - and now they're sitting there with three, four, sometimes five different pension pots scattered across previous employers.

The natural instinct?

"I should consolidate these. Simpler is better, right?"

Actually, no. In most cases, consolidating your pensions is the wrong move.

The Problem with Consolidating Pensions

When you roll everything into one big pension pot, you're limiting your options down the road. Specifically, you're limiting when you can access those benefits.

Here's what people don't realise: each pension scheme has its own retirement age. One might let you access benefits at 60, another at 65. When you consolidate them all together, you lose that flexibility. Everything gets locked to a single retirement age.

That might not matter to you now in your 30s or 40s. But when you're 58 and want the option to semi-retire or take some benefits early? You'll wish you'd kept them separate.

What I Often Recommend Instead

Rather than consolidating, move each pension into a retirement bond in your own name. Here's how it works:

The Setup

- You leave Company A after 5 years

- You have a pension pot there worth €20,000

- Instead of leaving it with the company scheme or rolling it into your new employer's pension, you move it to a retirement bond in your name

What You Get

- The bond mirrors all the rules of the original scheme (including retirement age)

- All correspondence comes directly to you

- You make all the decisions

- If you die, it's paid tax-free to your spouse

- No more chasing down trustees or outdated contact details 20 years later

What You Can't Do

- You can't add more money to it (it's a "closed shop")

- But that's fine; you'll have a new pension with your new employer or if not, you may choose to start a private pension

Yes, You Might End Up with 4 or 5 Bonds And that's okay.

Some people baulk at this. "Emma, I don't want to manage five different pensions!"

But here's the thing: when you get to retirement, you'll consolidate everything then anyway. At that point, you'll have full information and can make the best decision about how to structure your retirement income.

What matters now is:

1. Knowing what you have

2. Keeping it in your own name

3. Maintaining your flexibility

The Real Reason This Matters

Twenty years from now, you don't want to be tracking down a pension from a company that's been acquired twice, trying to remember which trustees managed it, or worse, discovering the company no longer exists.

I see this all the time. Someone in their 60s realises they have a pension somewhere from their 20s. The administrative nightmare of tracking it down is exhausting when you should be focused on enjoying retirement.

Do the work now!

Then, when you reach retirement, the process is straightforward: you've got everything clearly laid out, and you can make informed decisions about how to structure your income.

The Exception

There is one scenario where I might recommend leaving a pension where it is: if the scheme has an extremely low management charge that you won't be able to match elsewhere.

But even then, I'd probably still recommend moving it. The peace of mind and control that comes with having everything in your own name is worth a small difference in fees.

Getting Professional Help Makes This Easier

Here's the reality: moving a pension into a retirement bond involves paperwork. Forms from the old scheme. Setting up the new bond. Making sure everything transfers correctly.

This is where a financial adviser can take the burden off your shoulders. I do this regularly for clients: contact the old schemes, handle the paperwork, make sure the transfer happens smoothly, and ensure the bond is set up correctly in your name.

The whole process usually takes a few weeks, and then it's done. You have clarity on what you have, it's in your name, and you can move on with your life.

Most people are relieved once it's sorted. The worry of "I should really do something about those old pensions" finally goes away.

The Bottom Line

Job hopping is normal now. Multiple pensions are normal. What's not normal is taking the time to organise them properly as you go. Don't consolidate just because it seems simpler. And don't let the administrative burden stop you from taking control of your pension situation.

Are you in Ireland? If you've got old pensions sitting with previous employers and want to get them organised properly, get in touch. We can sort it out together.