How Many Pensions Can I Have?

The subject of pensions is a complex one and among the most debated whether you can have more one. The simple answer is yes, more there is far more to it than that.

All employers are now required to provide a pension scheme for employers, otherwise known as an occupational pension. This can be either a defined benefit or defined contribution scheme and in recent years in particular individuals have tended to move between companies more frequently. The result is that employees can accumulate a number of schemes.

The main rule in relation to occupational pensions, is that you can only be contributing to one scheme at any one time. If you have more than one occupational pension, i.e. if you have moved between jobs, that’s likely to be the one run by the company you’re currently working for. However, the others which you’ve contributed to previously will still be operating and invested but they must be dormant. That is to say, you are not making any contributions to them.

In some cases, you may be able transfer the pension from one company to another but this will be dependent on the companies themselves.

You are also allowed to have as many personal pensions as you like although your payments must not exceed your tax break limits.

You can also have as many Stakeholder Pensions as you like, but you must stay with the maximum contribution of £3600 of your gross earnings for all them combined.

As has already been mentioned, pensions can be a complex matter and it’s always best to seek independent financial advice to ensure you can make the most of the opportunities on offer.