There’s no right or wrong answer to this question – it depends on why you want to do it.
Some people just prefer having all their pension pots in one place to make it easier to keep track of them.
However, costs are very important. Think carefully about transferring from a low charging scheme to a higher charging one just to keep things simple.
That said, if you are coming up to retirement and your current scheme doesn’t offer the retirement income option you want, bringing all your pension pots into one scheme that has the flexibility you need could be a good idea.
If you have small pension pots worth less than £10,000, it might be better to keep them where they are. This is because if you’re considering taking a lump sum at some point before you retire, if you take the pension as a small pot lump sum, withdrawing the whole amount, this will not affect any future pension contributions.
You can usually do this up to three times with personal pensions and for an unlimited number of workplace/occupational pensions.
Normally, if you take more than your tax-free cash from your pension through flexible retirement income or as a lump sum, you may only receive tax relief on contributions to your pension pots up to £10,000 a year instead of the normal £60,000 annual allowance. This is known as the Money Purchase Annual Allowance (MPAA).
So, if you want to be able to take some money out but also continue to save, it might be better to keep smaller pensions where they are as taking the whole pot as a 'small pot lump sum' does not trigger the MPAA.
If you’ve built up a high value in pensions or think you will do so, you might also want to keep smaller pensions where they are. This is because small pots (less than £10,000) can be withdrawn under the 'small pot lump sum' rules without using up your lifetime allowance of £1,073,100.