Almost one-third (31%) of pension savers have stated that they want to consolidate their pension pots, Hargreaves Lansdown (HL) has found.

A survey of 2,000 people, carried out by Opinium on behalf of HL, found that a further two in five (40%) of savers were unsure about consolidating their pensions, with 29% stating that they wouldn’t combine them.

HL revealed that younger people are more likely to consolidate their pension, with over half (54%) of 18 to 34-year-olds stating that they would like to do so. This is compared to just 11% of over-55s.

The same survey also found that 57% of those taking part in the research have two or more pensions.

In the recent autumn statement, the Government announced plans for the lifetime pension, which enables savers to choose a pension that their employers pay into throughout their working life. This led to HL questioning why consolidation may be the best action to take.

The firm said that the benefits of consolidation include having all finances in one place, a cut down on admin time, paperwork and costs when pension withdrawal comes and also means that savers are less likely to lose track of pensions, which could generate thousands of pounds of income in retirement.

Head of retirement analysis at HL, Helen Morrissey, said: "Having all our pensions in one place can make a huge difference in terms of making them easier to understand and more efficient. You have one overarching view of what you have, and you are cutting down on administration. Consolidating in a SIPP can also give you greater investment choice as well as cost savings.

"It’s an issue that many people are considering with almost one-third of people saying they would like to consolidate their pensions. It could potentially be an even bigger issue for younger generations who get a pension with every employer through auto-enrolment and so risk losing track of them over time. Well over half (54%) of 18 to 34-year-olds say they would be interested in consolidating their pensions at some point.

"Bringing your pensions together can alter your decision making and reinvigorate your planning. You will approach one larger pension pot in a different way to several smaller ones. For instance, you may choose to take a small pension as a cash lump sum and spend it, whereas if you consolidate it into a larger pension, you are more likely to leave it where it is.

"This can result in better long-term decision making and make them much easier to engage with. Consolidation will also give you a better idea of where you stand – you may find you have more than you realised which is great news, but if you find your pensions are lagging you have the time to make up some ground."

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