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People’s Pension launches consolidation calculator to highlight transfer risks

by Emma Simon
May 6, 2025
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The People’s Pension has launched a new tool designed to help members better understand the impact of charges when transferring pensions. 

This consolidation calculator allows savers to compare charges across different pensions and see longer-term savings projections. This should help members understand how even slight percentage differences in charges can affect retirement outcomes.

The launch coincides with a study by People’s Pension which highlights that many savers only understand the impact of charges when transferring pensions if presented with tangible examples. 

However, the long-term impact of moving a pension to a higher charging scheme is significant. Analysis shows that a 30-year-old average earner moving a £10,000 pension pot from a provider charging 0.4 per cent to one charging 0.75 per cent would be left £32,834 worse off when they retired at 67.

The need for a simple comparison tool to compare charges is highlighted by the organisation’s previous research, which revealed nearly three-quarters (72 per cent) of people who transferred a pension were unaware of the fees associated with their new or old pension, and 11 per cent were unaware that their new pension had any charges at all. 

This calculator follows from the scheme’s pension overview webpage, which includes a one page document into the online transfer process, which highlights key factors members need consider before consolidation pensions — such as investment performance and service.

The People’s Pension is calling for greater collaboration from the pensions industry to allow people to compare their pensions based on the information that matters most.

It says it wants to see a requirement for providers to display simple, comparable and easy-to-find information on investment performance, charges and customer service, and that transfer incentive should be banned. 

The People’s Pension adds that it wants providers and regulators to work together to create a consumer facing Value-for-Money framework to help savers make more informed decisions. It has also called for commercial pension dashboards to be delayed until such metrics are displayed across all pensions.

The People’s Pension CEO Patrick Heath-Lay says: “The pensions industry does nowhere near enough to help savers understand the impact of charges on their retirement pots when they are considering transferring. 

“This lack of obligation on providers to be more transparent leads to a worrying number of uniformed transfer decisions, which are likely to be significantly detrimental to savers. This is exacerbated by incentives to transfer which often stops people reading the small print. It’s a critical problem because even small percentage differences in charges can have a significant effect on retirement outcomes.”

He adds: “Urgent action is needed from the providers and regulators to help people make more informed decisions and to stop them from having to work for years longer before they can retire.

“The launch of our pension consolidation calculator is a fundamental step in addressing this issue, helping savers make more informed decisions about their pensions to help them grow their savings.”

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