I’ve received a letter from Aegon that says I can transfer my existing plan fund value to my Aegon Retirement Choices (ARC) account.
Updated 22 November 2019
If we've made you an offer to transfer your existing plan fund value to your ARC account - we've already carried out checks to assess if this could be the right approach for you.
Combining your GPP and ARC plans will give you the convenience and ease of managing your assets in one place. There may be a difference in the management charges that will apply, your transfer offer letter will show whether the plan charges are the same, lower or higher.
You should consider this option carefully because if you choose to transfer, the total charges youll pay on ARC could be higher than youre currently paying for your GPP plan.
- the total annual charges that well take from your ARC account will be higher than the total annual charge on your existing plan. You should make sure you understand the impact this will have on what you might get back at retirement.
- you had waiver of contributions insurance cover on your existing plan . If you choose to transfer to ARC your GPP plan will be closed and you would lose the option to take out this cover in future.
Tax-free cash entitlement
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 were able 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.
Waiver of contribution
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.
If you choose to 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, youll 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 keep the GPP and not ask us to transfer the funds under your GPP to your new ARC account.
Or you can find more details in your existing plans policy conditions.
If you do want to 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.
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.
You should be comfortable with the investment choices that you make. As explained, you may lose features, protections, guarantees, or other benefits when you transfer.
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.
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.
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’ve not made an offer to transfer that fund value into your ARC account.
At the moment we’re only offering 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.
There may be a charge for this.
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 can move your existing plan fund value to your new ARC account, and you want us to go ahead, you’ll need to complete the Transfer authority form that was included with your letter and return this to us before the deadline date in your letter.
We cannot accept your acceptance of this offer by any other method because we need a hard copy with your signature.
If you don’t want to move your existing plan’s fund value to your new ARC account, you don’t need to do anything.
Your existing plan, and the fund value you’ve already built up, will remain as is.
This will mean that you’ll have your new ARC plan, where your ongoing regular payment will be paid into, as well as a separate plan for your existing GPP plan. You’ll need to manage them separately, for example if you want to make a change such as switch investments or update your personal details you will need to give us an instruction separately for each plan.
For managing your account online you can log in to your online services.
- For your new ARC account log in to Retiready to manage your account.
- For your existing plan log in to our online services.
If you want to contact us about taking an income or want to speak to us about any of your plans you should contact us on:
- for you new ARC account - 0345 608 1680 (select the workplace savings option); or
- for your existing ‘old’ plan – 03456 10 00 10 (have your plan number ready).
If you let us know, when you contact us you have another plan with Aegon we’ll be able to transfer you to the correct team, your call will be picked up without joining any call queues, and your query will be dealt with in one call.
You can pay single one-off contributions or set-up regular payments by setting up a Direct Debit instruction (assuming you still have funds in your existing plan, and have not since transferred out).
If you change your mind in the future you’ll still be able to transfer your funds.