Sadly, your Destiny 1 characters will be reset in the upcoming Destiny 2, Bungie has confirmed.
Bungie posted the info on their blog yesterday,
“Sequels represent the start of a new adventure for every player, with new worlds to explore, new stories to tell, new powers to acquire, new loot to earn, and much more.“This led us to a decision that would enable us to serve both the game and the player’s best interests: Destiny 1 power, possessions, and Eververse-related items and currency will not carry forward. They will, however, remain accessible to you in Destiny 1.”
You may, however, retain your Destiny 1 characters appearance as long as you have reached level 20 and completed the “Black Garden” Story Mission.
Some may be enraged by the news of the loss of all their hard earned loot and progress when they carry over to the new game, though I agree with Bungie in this instance and feel that this will make the experience better for everyone.
Every player will get a chance to start afresh and experience the sequel how Bungie intend you to. This will allow players to set out and explore this vast new edition to the Destiny in a natural and organic way.