How to transfer your pension

Your first step should be to check which kind of pension you’re looking to transfer. If you’re transferring a defined contribution pension, with these pensions, the amount you end up with at retirement depends on how much you (and your employer if it’s a workplace pension) have paid into your pension, as well as how the investments in your pension have performed. Learn more about defined contribution pensions in our guide What is a defined contribution pension?

Defined benefit, or final salary, pensions, provide a guaranteed income in retirement and are generally considered extremely valuable. It’s rarely considered the right option to transfer this type of pension into another plan, and you should get professional financial advice if you’re thinking of doing this. If your pension transfer value is worth more than £30,000, regulator the Financial Conduct Authority (FCA), has made it compulsory for you to see an independent financial adviser (IFA) before moving your pension. Find out more about this type of pension in our guide What is a defined benefit pension?

As mentioned, transferring pensions won’t be the right option for everyone, and it needs careful consideration. If you’re in doubt about whether it’s the right step for you, speak to a professional financial adviser. Find out more about getting advice on your pension in our guide How to get advice on your pension.

If you’re transferring several different pension plans, and you’ve lost their details, you can use the government’s free Pension Tracing Service to find contact details for your providers.

Author: wpadmin

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