Pension transfers - things to think about
Updated 29 September 2020
Combining your existing pension pots is one option to help you keep track of your retirement savings. It will cut down on paperwork and could save you money as you may currently be paying multiple fees and charges.
Transferring or investing your pension may not be the best option for you, you should compare the benefits from your current pension with the estimated benefits of your new pension, including any guarantees and penalties. If you're unsure whether this is right for you or need advice, please speak to a financial adviser.
Before you transfer, here are some important things to think about.
We recommend that you get a breakdown of all the features, benefits and charges of any existing pensions you have. Here are some of the things you'll want to find out:
- The type of plan it is
- The current transfer value
- Any fees or charges
- Any valuable features, guarantees and other benefits
- Any surrender charges or Market Value Reductions (MVR) if you transfer
- Is there protected tax-free cash or protected low pension age
- Any trusts and expressions of wish in place
- Is there any waiver of contribution or life assurance benefit in place
- What funds is it invested in?
- Any employer contributions being made
This list isn't exhaustive. If you don’t have the information to hand, you can get it by contacting your existing provider.
You should consider your own situation carefully. The Money Advice Service has some useful information which could help.
If you’ve lost the details of any existing pensions, the Pension Tracing Service can help.
It’s a free service run by the Department for Work and Pensions. It can help you trace the most up to date contact details of any existing pensions.
Once you’ve got the details you can then get in touch with the provider to get the information you need to help decide if transferring is right for you.
If you decide that you want to transfer to Retiready, we’re here to help. To help make the process as easy as possible we'll work with you and your current provider to get the paperwork and money we need to complete your transfer.
If you don’t want to make a transfer, you can still record the value of your other savings in Retiready - giving you a single overview of your total retirement savings. Adding your other savings is easy. Simply sign in to Retiready and go to the Savings page and select ‘Add another account’.
If you haven’t already signed up for Retiready, get started by registering for a free account.
Things to consider
You should be comfortable with the investment choices that you make as you may lose features, protections, guarantees or other benefits when you transfer. If you’re unsure, you should seek financial advice - there may be a charge for this.
A transfer for consolidation purposes is from one capital at risk pension product to another – so the value of your investments after any consolidation can still fall as well as rise and the final value of your consolidated pension pots may be less than paid in.
Any new funds you move your money into will have their own set of risks that will be detailed in the fund information that will be available to you.
Remember that what you get back depends on several things, for example how your investments perform and how they are taxed, and you may get back less than you invested.