Things to consider before transferring a pension

Before you transfer a pension you should be aware of the implications this may have.  Please read the following information so you know what information you should check before completing any transfer paperwork.


Please compare the charges on your existing pension and compare it to the charges on the pension you are transferring to.  Your current pension provider may impose exit penalties or charges if you transfer or stop contributions.  If your existing pension charges are lower than the pension you are transferring into, you should satisfy yourself that the service and features of the pension you are transferring into outweigh any increase in cost, or are worth any fees/penalties incurred.


Your existing pension plan may offer different types of guarantees on your pension.  These could be in the form of Guaranteed Annuity Rates, Guaranteed Investment Returns, Guaranteed Bonus Rates or Guaranteed Minimum Values.  These guarantees would be lost on transfer, so you should satisfy yourself that the service and features of the pension you are transferring into outweigh any loss of guarantees.


Your existing pension plan may provide life cover or waiver of premium which would be lost if you transferred the pension.  This type of insurance could be more expensive, more difficult, or even impossible to purchase once you leave your existing pension plan.


We do not accept Final Salary, Occupational or Section 32 policy transfers unless Independent Financial Advice has been provided on the transfer.


We sometimes receive information that might indicate that the transfer may not be in your interests, (e.g. if there is a transfer penalty).  In this instance, we will endeavour to consult with you further to confirm whether or not you wish to proceed.  However, please note that if you do not take Independent Financial Advice, the responsibility for the suitability of the transaction, including investigating any charges, penalties or losses of guarantees, lies entirely with yourself.

You can contact us at any point for guidance on pension issues and if you wish to take Independent Financial Advice, we are happy to offer a free introductory meeting so you can assess the merits of Independent Advice before agreeing to pay a penny so feel free to contact us today!