Can I transfer my pension?

Key takeaways

• You can transfer your pension to a new provider and you may receive higher returns on your investments and lower fees

• You can transfer between different types of pensions, but there may be fees to pay

• Consolidating your pensions into one pot can make them easier to manage and switching your pension might give you access to different investments

Can I transfer my pension?

Yes, you can transfer most pensions to another pot. There are lots of reasons why you might want to transfer, or switch, your pension. They include:

• Consolidating lots of small pension pots into one means you only need to check one account, and your fees may be lower

• The new pension pot may be more flexible or have a wider range of investments to choose from

• Your fees could go down

• You may potentially get higher investment returns if you switch (although these are never guaranteed)

What is a pension transfer?

A pension transfer (also referred to as pension switching) involves moving your funds from one pension scheme to another.

This process allows people to switch to a scheme that’s better suited to them, possibly because it has lower fees, has access to different investment options, or to consolidate multiple pensions.

Transfers can occur between different types of pensions, such as from a defined contribution pension to a self-invested personal pension (SIPP), or from one SIPP provider to another.

It's important to carefully consider the implications because transfers may come with fees, potential loss of benefits, or changes in investment performance.

Seeking advice from a financial adviser or pension specialist is often recommended to ensure that the transfer aligns with your retirement goals, although you will usually have to pay for this service.

Why might you consider moving your pension?

There are a number of reasons you might consider transferring your pension. These include:

If you’re worried you might not have the funds to support you financially in retirement, our guide to how much you should pay into a pension can help.

What do I need to consider before transferring a pension?

There are a few considerations before transferring your pension. These include:

Am I eligible for a pension transfer?

Most workplace and personal pensions are eligible for transfer.

You can usually transfer your pension at any time before you start taking money from it and sometimes you’ll still be eligible for transfer after you’ve started to take money from it.

Whether you can transfer a workplace pension you are still paying into depends on the scheme rules. Moving it may also mean giving up future employer contributions.

If you want to transfer a defined-benefit pension worth more than £30,000 to a defined-contribution pension, you must usually take regulated financial advice first.

You should also ensure you're not restricted by bankruptcy or a pension-sharing order from a divorce.

How do I initiate a pension transfer and what documents will I need?

To start a pension transfer take the following steps:

1. Contact the new provider: They should help guide you through their requirements. For example, MoneyFarm makes signing up and creating a new personalised pension plan simple and quick online

2. Gather your documents: You may need your current pension details, identification documents such as your national insurance number, a passport or recent household bill, and a transfer form from the new provider

3. Seek authorisation: Your current pension provider may require you to supply them with a signed transfer authority form. Again, our partners MoneyFarm handle all of this for you

4. Take financial advice: For certain transfers, especially defined benefit pensions or large sums, you may need advice from a financial adviser

5. Await confirmation: Once initiated, both providers will coordinate the transfer, and you'll receive confirmation when it's complete. A service such as MoneyFarm will do the work for you and keep you updated about your pension transfer

Are there any fees associated with transferring a pension?

There are several fees associated with transferring a pension. Also, the existing fees you pay may change under a new provider. Fees typically include:

• Exit fees: Charged by your current provider for leaving the pension scheme

• Set-up fees: Incurred with the new provider to establish the transferred pension

• Advisory fees: If seeking financial advice for the transfer, advisers may charge a fee

• Annual management charges: Ongoing fees for managing the pension fund with the new provider

• Transaction costs: Associated with buying and selling investments during the transfer process, adding to overall costs

How long does a pension transfer typically take to complete?

A transfer often takes around two to six weeks, but it can take longer if checks, advice or complex benefits are involved.

Other useful guides

• How to find a lost pension

• Guide to the types of pensions

• How do pension contributions work?

Find a private pension with our partner MoneyFarm

Setting up a private pension can be quick and simple online, but it's a good idea to take some time to do your research first. Getting expert and impartial advice is a good idea if you're not a confident or experienced investor, although this will come with an added cost.

We have teamed up with our chosen partner MoneyFarm to help you choose the right private pension plan. They can help you combine your old pensions into one, easy-to-manage plan and they will choose the best investment plan for you, using funds from the whole of the market.

You will also get a dedicated pension adviser to answer any questions. If you need help tracing a lost pension or want them to check for any penalties or benefits, they can also do that for you, for a one-off fee of 1% of your pension value (taken at transfer from your pension pot).

Capital at risk. Past performance is not a guide to future performance. This website does not constitute personal advice. If you are in doubt as to the suitability of an investment please speak to a financial adviser. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change.

MoneySuperMarket.com Ltd is an Introducer Appointed Representative of MoneyFarm, which is authorised and regulated by the Financial Conduct Authority. FCA number 596398. Registered in England & Wales, Company Number 07731925. Registered office address: Norwest Court, Guildhall Street, Preston, PR1 3NU.