Stakeholder Pension Transfer
If you have a stakeholder pension, you might feel that you could secure a better eventual retirement income with a different product, but are unsure whether or not you can transfer out of your current scheme.
The good news is that this is certainly possible. However, there are rules and specific details to consider.
To help you make a decision on transferring a stakeholder pension, in this article we’ll discuss:
- Can I transfer a stakeholder pension?
- Should I transfer my stakeholder pension?
- Can I transfer my stakeholder pensions funds to a Nest pension?
- What charges will I incur if I decide to transfer my stakeholder pension?
- Can I transfer my stakeholder pension into a SIPP?
- Speak to a pension transfers expert
Can I transfer a stakeholder pension?
If you hold a stakeholder pension and are considering transferring it to a different pension type or provider, the good news is that, yes, this is possible.
You will need to consider a number of different details before making a decision:
- If a transfer is in your best interest.
- Where you should transfer your stakeholder pension.
- If you should take advice and seek help to transfer your pension.
If you wish to transfer out of your stakeholder pension, where you have a fund of more than £30,000, the government insists you should take financial advice. This is to ensure you understand the decision you make, and whether it is the right one for you.
If you get in touch with us, we can connect you with an experienced stakeholder pension transfer advisor who can help you make the best decision for your needs. They’ll assess your situation, answer all your questions and help ensure you’ve got the right pension or can transfer to a better one.
Should I transfer my stakeholder pension?
Whether or not you should transfer your stakeholder pension is a completely personal decision, based on your unique situation and retirement goals. A stakeholder pension has many benefits, with the typical low cost of running it, among them.
But another benefit of a stakeholder pension is that you can always transfer out of it, or move into another one and exit fees also tend to be on the lower end of the scale.
This means that if a great pension option becomes available to you, that’s better suited to your job, situation and future plans, transferring out of a stakeholder pension should be relatively straightforward – in pension terms at least. It also shouldn’t cost the earth.
Can I transfer my stakeholder pension funds to a Nest pension?
Yes, it is possible to transfer your stakeholder pension to a Nest pension. It’s also likely this could prove to be a cost-effective transfer choice, giving you easier access to your pension without losing any or much of your pension transfer value.
Of course, you shouldn’t just consider the initial costs of a stakeholder pension transfer.
Other details are:
- The existing benefits of your stakeholder pension.
- Comparing the investment and management options of both pension types.
- The possibility of a future transfer out of Nest if you decide a different pension option would work best for you in the future.
To find out more about whether or not you should transfer your stakeholder pension to a Nest pension, get in touch and we can arrange for an expert to speak with you about the benefits of each option so you can make an informed choice.
Alternately, you can find out more about this type of workplace pension and the implications of transferring into one in our guide to Nest pension transfers.
What charges will I incur if I decide to transfer my stakeholder pension?
Stakeholder pensions were designed to be an easy way for employees to move their pensions around with them when they change jobs. Part of the benefits of stakeholder pensions is that if you transfer out of one, it should be free of charge.
However, you could still incur charges from the pension you choose to transfer into. In addition, while stakeholder pensions should be transferred free of charge, there could be other charges from the provider that you may have to pay.
The pensions advisors we work with are experienced in stakeholder pension transfers and would be able to quickly answer questions relating to charges or any other queries you may have. They can also help ensure you end up with the best possible pension and avoid unnecessary fees to help you make the most of your retirement.
If you get in touch with us we can arrange for an expert to outline what charges may be incurred for transfers such as this.
Can I transfer my stakeholder pension to a SIPP?
Yes, transferring your stakeholder pension into a Self Invested Personal Pension, or SIPP, is another possibility. A SIPP gives you much more control over your pension and in most cases you can manage it just like an online bank account.
However, if you choose to take advantage of the ability to manage your pension more closely and actively, you could be subject to additional charges. Charges and your ability to manage a SIPP pension differ from provider-to-provider, so you should take the time to find out more about the differences between your existing stakeholder pension and the SIPP you’re interested in transferring your pension pot into.
Speak to a stakeholder pension transfer expert today
If you’re interested in transferring your stakeholder pension but are unsure if you should, or how to do so and would like to speak to an expert to find out more, call Online Money Advisor today on 0808 189 0463 or make an enquiry.
Speaking to an independent pension expert before you proceed could save you time, money and potential disappointment. The experts we work with won’t charge a fee for your initial consultation and there’s no obligation to act on the advice you receive.