Pension Transfers

A pension transfer is the process by which the funds that have been accruing in preparation for your retirement can be moved to a different account. 

The transferring of pensions is an important matter to consider – whether you have multiple pension pots to consolidate or you do not think your current scheme suits your requirements.

While many people choose to speak to a financial advisor in order to transfer their pension, it is absolutely possible to do it yourself. The complexity of this process will depend on the number and type of pots you currently have and the regulations of the providers involved.

There are many potential benefits of transferring your pension. If you wish to consolidate multiple funds, your savings will be easier to track and manage. 

If you are simply planning to move your money from one account to another, you may be able to save more in the long run, or to avoid certain charges.

In this article, we answer questions such as “how can I transfer my pension?” and “what does transferring my pension involve?” to ensure that you find this process as straightforward as possible.

Whether you’re planning to move your savings from a Defined Contribution Pension to an SIPP (Self-Invested Personal Pension), or between two different pension funds of the same kind, it’s important to know what you’re doing.

The simplest thing to do is to contact the pension providers from whom you wish to withdraw, and inform them of your intentions.

You should also notify the pension providers who manage the scheme into which you wish to transfer your funds. If you are not totally confident doing this yourself, don’t hesitate to contact a trusted pension transfer specialist for advice and assistance. 

Before transferring pension funds, it is vital that you check that you are not going against any pension transfer rules or regulations laid out by the providers involved. 

You need to make sure that your current providers will allow you to transfer some or all of your savings from your pot, and that your new scheme will let you pay those funds into it.

You should also check for pension transfer charges that may be involved, as well as adjustments to any protection that you may currently have in place. It is also important to confirm the age at which you will be able to access your savings following the transfer.

While most pensions cannot be transferred between individuals, exceptions can be made in cases of divorce or the dissolution of a civil partnership – when an amount from a pension scheme is included in the settlement – or in the event of the pension-holder’s death.

When transferring pension funds, it is useful to check whether your new scheme allows you to nominate an individual to inherit funds from your pension if you pass away.

Many people choose to transfer their workplace pension – usually a Defined Contribution Scheme – to a private pension such as an SIPP.

Usually, all you need to do is to find out the details of your old workplace pension and make sure both the old scheme and the new scheme will accept the transfer. 

You should confirm the notice period required, then, in accordance with this, make contact with your new pension provider and send all of the information required in order to set up the transfer. 

Individuals who wish to change from a workplace pension to a private one may do this because their old scheme is closing, they are planning to go self-employed or they have found a private provider that offers better value than the one their workplace offers.

Depending on the number of pension pots you currently have and the types of transfers you may need to undertake, you may well prefer to seek pension advice from professionals rather than attempting to do this yourself.

Finance specialists are often well-versed in the rules and regulations of pension transfers and will be able to ensure that the process goes smoothly, saving you from hidden charges or any other pitfalls.

The team at Hilltop Finance is composed of experts in the field of savings, investments and pension advice. Get in touch with us to discuss your requirements regarding pension transfer.