I've been told my existing Aegon plan fund value is moving to Aegon Retirement Choices (ARC)
Updated 31 December 2019
If we’ve told you we’ll automatically transfer your existing plan fund value to your ARC account - we’ve already done some checks to assess if this would be the best approach for you. We’ve calculated that the total annual Aegon charges we’ll take from your ARC account will either be the same or lower than your total annual charge on your existing plan. We may review our charges in the future.
Your letter may have highlighted that you have a protected tax-free cash entitlement under the existing scheme. This entitlement could potentially be lost on a transfer out, however we’re able to carry this protection over into the ARC scheme by making a block scheme membership transfer of funds. There is no action required by you to retain this right. Your exact tax-free cash entitlement will depend on a number of variable factors and will be calculated when you come to take your benefits.
Your Group Personal Pension (GPP) gives you the option of taking out waiver of contribution insurance cover. This is an insurance to help with paying pension contributions to your plan if you become seriously ill or disabled and are unable to work for more than six months.
This cover is not available on your new Aegon Retirement Choices (ARC) account.
Following the transfer to ARC your GPP plan will be closed and you would lose the option to take out this cover in the future.
If you do want waiver of contribution cover in the future, you’ll need to restart a pension contribution into your GPP. The cover would be on any contributions you're paying into your GPP plan.
Therefore if you consider that the option to take out waiver of contribution cover in the future is important to you, you may wish to ask us not to transfer the funds under your GPP to your new ARC account. To do this, please see the section 'What if I don't want the transfer to happen?' below.
Find out more about waiver.
Or you can find more details in your existing plan’s policy conditions.
If you do transfer, and want to have the benefit of waiver of contribution insurance cover, you may be able to take out a standalone policy with another provider.
As this is a transfer from one capital at risk pension arrangement to another, please remember that the value of your pension pot can still fall as well as rise and isn't guaranteed. The final value of your pension pot when you come to take benefits may be less than has been paid in.
If you’re not sure transferring is right for you, you should speak to a financial adviser. If you don’t have one you can find one in your local area on the unbiased.co.uk website.
If you make any changes to your existing plan before the transfer is complete – this may affect the terms of this transfer offer.
This is dependent on the investment you choose. Investment costs on ARC are different to those on your existing plan. When we come to transfer your plan we’ll reassess it before we automatically transfer your fund value. If we can't demonstrate that this would be the best approach for you, we'll write to you to let you know we'll no longer be automatically transferring your plan without you telling us to.
I have more than one plan with Aegon – why does the letter only
mention one of my plan numbers? Are you transferring all my
If you have another plan with Aegon, not detailed in your letter, we’ll not automatically transfer that fund value into your ARC account.
At the moment we’re only looking to move the fund value that you’ve built up in your existing workplace plan, the one detailed in your letter. If you have other plans with us, and you want to consider transferring, you should speak to a financial adviser to find out what your options are.
If I choose not to transfer at the moment, but want to at a later date,
are there any consequences of transferring after the deadline?
If you change your mind in the future you’ll still be able to transfer your fund value. However, by transferring after the response date in your letter, we would have to sell your investment in your old pension plan and invest again in your new pension plan.
This could result in your money not being invested in the market (known as out of market) for up to five days. You would miss out on some growth if the markets rise in that period, but would be protected against a loss if they fall in that time.
If we’ve highlighted that you have an entitlement to protected tax-free cash and you choose not to transfer at this time, as part of the block transfer, it may not be possible for you to carry over this protection if you choose to transfer in future. If you want to find out more about protected tax-free cash you should speak to a financial adviser.
If we’ve told you we’ll move your existing plan fund value to your ARC account, and you don’t want us to, you’ll need to confirm this before the date in your letter – you can do this by:
- email – email@example.com; or
- phone – 03456 091 679 (Call charges will vary and may be recorded or monitored.).
You’ll need to quote your existing plan number, which you’ll find in your letter.
If you do this, your existing plan will remain as is.
If you're contacting us by email, please remember not to send any personal, financial or banking information because email is not a secure method of communication.