Does having a personal pension solve the problem of multiple pots?

Personal pensions are increasingly being used by employees not because they are turning away from workplace saving, but because they want greater choice and visibility over how their long term savings are organised. Auto enrolment has transformed pension participation across the UK, yet it was designed to prioritise inclusion rather than long term clarity, particularly in a labour market where most people will move roles many times during their career.

As working patterns continue to evolve, employees are becoming more aware that each job change typically creates a new workplace pension, adding another pot to an already complex picture. Over time this fragmentation makes it harder to understand total savings, assess performance, and feel confident about long term outcomes. In response, many people are choosing to open a personal pension so they can take a more active role in shaping how their retirement savings come together.

For some, a personal pension offers a practical way to consolidate historic pots, bringing past workplace savings into a single place that is easier to monitor and manage. This can reduce administrative complexity and help individuals build a clearer understanding of their overall position. Importantly, this behaviour is driven by choice rather than dissatisfaction. Employees continue to value employer contributions and the structure that auto enrolment provides, but they also want flexibility that reflects how they manage the rest of their finances.

Despite this shift, the issue of multiple pension pots remains widespread. Each new employer typically enrols an employee into a new scheme, which means that even those who consolidate in the past may continue to accumulate additional pots over time. Without ongoing visibility and the ability to direct contributions in a way that aligns with existing savings, fragmentation persists.

This places a growing emphasis on the role of choice within the workplace. When employees are able to choose where their workplace contributions are paid, including into a personal pension they already use, the potential to reduce long term fragmentation increases significantly. This approach allows individuals to maintain a single, coherent view of their retirement savings while still benefiting from employer contributions and regulatory protections.

MoneyHelper is clear about the fact that personal pensions are not only for the self employed. They are a legitimate option for employees who want flexibility and control as their circumstances change. However, their effectiveness in addressing the multiple pot problem depends on how they are supported within the wider pension ecosystem.

Having a personal pension can help solve the problem of multiple pension pots for some people, particularly when it is used as a central place to consolidate historic savings and maintain visibility over time. However, this only works when individuals have genuine choice over where their workplace contributions are paid.

Without the ability to direct new contributions into an existing pension, each job change continues to create another pot, and fragmentation remains. Supporting pension choice within the workplace is therefore a critical step in turning personal pensions from a partial solution into a meaningful one.