Answers · UK 2025/26
Can I have multiple pensions?
Yes. There is no limit on the number of pension schemes you can hold — workplace, personal, SIPP and State Pension can run in parallel. The only shared cap is the £60,000 annual allowance (2025/26) across all your contributions combined.
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Most UK workers accumulate several pension pots — a workplace scheme at each employer, perhaps a SIPP for self-directed investing, and the State Pension on top. HMRC does not cap the number of schemes; it caps the total tax-relieved contributions in a year. For 2025/26 the annual allowance is £60,000, tapered down to £10,000 once threshold income passes £200,000 and adjusted income passes £260,000. You can carry forward unused allowance from the previous three tax years if you were a member of a registered pension scheme then. The lifetime allowance was abolished from 6 April 2024 and replaced with the Lump Sum Allowance (£268,275 of tax-free cash across all schemes) and Lump Sum and Death Benefit Allowance (£1,073,100). Practical points: small pots under £10,000 can be taken as one-off "small-pot lump sums" up to three times without using the MPAA. Consolidating multiple workplace pots into a SIPP reduces fees and admin but may forfeit valuable guaranteed annuity rates or protected pension ages — get regulated advice before transferring a defined-benefit pension worth over £30,000. Tracing lost pots is easy via the GOV.UK Pension Tracing Service.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.