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You might find yourself wanting to move your pension to a new provider for a whole host of reasons. But transferring your pension isn’t something that you should rush into right away.

It is important that you understand the rules around transferring your pension if you are considering it for whatever reason. We frequently get asked how to transfer pension pots, so we thought we would utilise this article to explain what pension transfers are, how they work, and how to transfer pension pots if you require to do so.

What is a Pension Transfer

Many people ask us what is a pension transfer. A pension transfer is when you move your pension from one provider to another. There is a multitude of reasons why you might want to transfer pension pots such as:

  • Moving an old workplace pension to the same scheme as your new workplace pension.
  • Taking a more active role in investing your pension by transferring it into a self-invested personal pension (SIPP).
  • Consolidating your pensions into one pot.
  • Moving to a different pension provider that has lower charges.

A pension transfer could help you achieve a good pension fund, which could give you a more comfortable retirement by switching into a fund that has lower fees, better historical performance, and aligned to your financial risk level.

Capital at Risk, as with any investment, the value of your funds can go down as well as up. We always recommend speaking with a fully qualified and FCA-regulated adviser.

Is a Pension Transferable?

Is a Pension Transferable? In the main, yes, however, there are some cases where transferring your pension pot may not be suitable, but we will delve further into it for you below.

It must be noted that if you find yourself wondering ‘is a pension transferable?’ there are a few things you need to think about. Transferring pensions will depend on a number of factors that need to be taken into consideration such as what type of pension scheme you currently have. For example, if you are looking for a pension transfer from a salary-related pension such as a defined benefit pension scheme it will mean that you will have to give up your scheme benefits in return for a cash value which will then be invested in another pension scheme.

You may not be able to transfer your pension if you have one of the following pension schemes which have particular safeguards in place:

  • An unfunded public sector pension scheme such as the local government pension
  • Guaranteed annuity rates
  • Guaranteed minimum pension

Can You Transfer Workplace Pensions?

We get asked all the time ‘can you transfer workplace pensions?’. We wouldn’t usually recommend moving your current workplace pensions, (unless a partial transfer was available) as you may lose the valuable contributions for your employer. While in majority yes you can move old workplace pensions, there are some instances where transferring is not possible, such as if you are part of an ‘unfunded’ public sector pension scheme. Unfortunately, these types of pension schemes are not transferable. Examples of an unfunded public sector pension scheme are the NHS scheme or the Teachers Scheme.

If your defined benefit pension (also called final-salary pension) is valued at over £30k, then you will be regulatory rules be required to take professional financial advice, to ensure transferring your pension is right for your circumstances.

Here at Hilltop Finance, we offer impartial advice about pensions such as transferring them, consolidating them, or even carrying out pension reviews that will analyse your current private pensions to see how they are performing. Our team of financial advisers will ensure that you receive advice tailored to your needs and allow you to get the retirement you desire. Whatever pension query you may have such as ‘How To Transfer Pension Pots?’ or ‘Can You Transfer Workplace Pensions?’ we can help answer your questions. Get expert pension advice with a free consultation today here at Hilltop Finance. We have a team of highly qualified pension advisers who will help you make the most of your pension.