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Older Pensions Under Review

Posted by Ravish Kumar on 17-08-2026

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People with older pension plans could be paying higher charges or receiving weaker service than customers using more modern products.

A recent review of legacy pensions — plans that are no longer sold to new customers but still hold existing savings — identified problems linked to complex fees, outdated product design and incomplete customer data.

At the same time, some providers are already improving these products by reducing charges or moving customers to better-value alternatives.

Why Older Pensions Matter

A pension opened many years ago may have been designed for a very different financial market. Some older plans can include complicated fees, limited investment choices or less convenient access to account information.

That does not mean every legacy pension is poor value. Certain plans may contain valuable guarantees or benefits that could be lost if the money is transferred elsewhere.

The main concern is whether providers are regularly checking that customers continue to receive fair value.

FCA policy director Charlotte Clark explains that people with older pensions should not be disadvantaged simply because their products are no longer available to new customers, and says improvements already made by some firms show that better outcomes are possible.

What Providers Are Changing

Some pension companies have started simplifying older products, capping or reducing fees and comparing customer outcomes across different plans.

Others are moving savers into newer alternatives when doing so clearly improves value.

The regulator wants these practices to become more common across the industry, particularly for closed products that may have received less attention in the past.

Should You Move an Old Pension?

A newer pension with lower fees is not automatically better.

Older plans can sometimes include guaranteed annuity rates, protected retirement ages or other benefits that are difficult to replace.

Before transferring, check:

total annual charges;

investment options;

any guarantees or special benefits;

retirement income choices;

service and digital access.

Do not transfer a pension simply because it is old. Compare the complete package first.

Why Regular Reviews Help

Many people accumulate several pension pots while changing jobs and then leave them untouched for years.

Reviewing them periodically can reveal high fees, outdated investments or forgotten benefits.

The regulator is also supporting wider reforms, including pension dashboards, designed to make it easier for savers to see different retirement accounts in one place.

An old pension does not necessarily need replacing, but it should not be forgotten. Checking its charges, benefits and investment options can help ensure your savings are still working effectively for retirement.