Single or multiple pensions fund

[del mar]

Evening

Does it make any difference to growth if you have one old fund with no new contributions gaining growth, and a separate new one starting from zero with regular contributions?

A simple compound calculator says not, but I always thought one big fund was better than two little ones ?

Thanks

Del

[WindyCommon]

Mathematically no.

Combining the two funds may get you to a lower pricing bracket for platform and/or investment charges though. In this case the benefit is real

[Gary29]

I'm in a similar boat, I've actually got 3 similarly sized pension funds (still paying into the 3rd regularly) so I'm in for answers as I've been thinking about trying to combine them for a while now.

[JulianPH]

The number of pension funds you have is not important - unless (as had been said) you can drive down the price by consolidating them together.

The performance of the investments within the pensions (and the charges) is the only driving factor.

A pension is a tax wrapper, not an investment. Think of it as a paper bag before you put the sweets in it, as it is the choice of sweets that matters, not who you get the paper bag from!

[Welshbeef]

You normally get one correspondence from each pension scheme a year - not a lot.

1. If you transfer funds there is a transfer fee which could take decades to make those savings from the mgt fee %.
2. Spreading the risk - all eggs in one basket
3. Depending on your age you may well have many more pension funds to come as you move companies through your working life
4. Why not chuck them into a SIPP?
5. What materiality are they?