Transferring a Pension to Another Provider
If you’re looking to transfer your existing pension to a different provider, then you’ll want to ensure you get maximum benefits and protection while making the switch. There are a great deal of factors to consider when transferring a pension, and this article should give you a good idea of what to look out for.
The pension experts we work with are highly experienced in facilitating transfers from one provider to another and will be able to give you bespoke advice at every step of the process.
This article will cover:
How to find the best pension transfer providers
Once you have a clear idea of your priorities on issues, such as type of pension you want and the features you need it to include (as well as how much you are willing to pay for transferring to another provider), you can start to look for where to transfer, ideally with the help of an expert who can quickly identify the best options.
The summary below should give you an idea of what some of the better-known pensions providers are currently offering to customers who want to switch in or out of their schemes, but this is only intended to be a snapshot of what’s available, and we always recommend you speak to an expert for a more holistic view.
Fortunately, as long as your pension type is supported, it is possible to make the transfer online, and there are no penalties applied in either scenario.
- Transfer in: You won’t be charged a fee if you transfer your pension to Aviva from another provider’s scheme.
- Transfer out charges: There are not usually any fees incurred when you transfer a pension from Aviva to another provider’s scheme, but whether you lose any benefits will depend on the terms of the specific product you currently have with Aviva.
Prudential offers a range of options for those wishing to transfer in or out of their scheme, including:
- Pension transfer in: Customers can usually transfer into a Prudential scheme depending on the type of pension you want to transfer. Prudential doesn’t charge a fee to transfer funds in.
- Transfer pension out: If you wish to transfer a Prudential pension to another scheme, this option is also supported where possible with no fee.
- DB pension transfer: Prudential is authorised by the FCA to provide advice on defined benefit transfers and can assist those who want to get a transfer value for their DB scheme and potentially make the switch. They will refer you to a Prudential pension transfer specialist if you wish to pursue this option.
Hargreaves Lansdown supports pension transfers into a SIPP, and if you move funds worth over £5,000 they will gift you between £50-500 as a thank you.
Transfer final salary pension
Hargreaves Lansdown does not list defined benefit schemes such as final salary pension among the types of scheme that can be transferred into, however, they are happy to discuss options with those who want to transfer a final salary pension to one of their SIPPs.
Standard Life does not charge for pension transfers, whether you are moving to or from their scheme, and you should be able to apply online. However, you will not be able to retain any guaranteed benefits such as the GMP if you’re transferring in.
The summary below sets out your options.
- Transfer pension in: Scottish Widows will accept transfers in from most other pension schemes. There is no charge to transfer your pension to Scottish Widows, and the switch can be made online.
- Pension transfer out: For those looking to move to a different provider, there are no fees associated with making the transfer.
However, they cannot accept transfers from certain types of scheme, including defined benefit (career average/CARE or final salary pensions), any pension your employer is still paying into or several other pension types.
Aegon accepts transfers in from a wide range of personal pensions and from some workplace schemes, including defined benefit schemes, provided that the transfer has been enacted and recommended as the best course of action by a qualified financial advisor. They don’t charge a fee for the transfer.
Aegon also allows existing customers to transfer their pension pot to another provider and does not charge for the service.
Legal & General
Legal & General allows transfers both in and out of its pension scheme, with no specific charge for the transfer. They cannot guarantee that all benefits will be retained when you transfer from another scheme.
Royal London allows transfers in and out of their schemes from a variety of other providers and does not charge for this service.
Fidelity accepts pension transfers from a wide range of providers and scheme types, including defined benefit schemes such as final salary, GMP and pensions with guaranteed annuity rates (GAR). Transfers of this type are allowed on the condition that the customer has sought independent financial advice and explicitly consented to give up certain guaranteed benefits.
There is no transfer fee, either to transfer in or out of a Fidelity pension scheme. They do not accept transfers in of less than £1,000.
Why speak to an advisor?
Transferring a pension is a serious undertaking that involves a significant chunk of your life savings and a degree of risk, so it is always advisable to seek professional assistance to make sure your decision is the right one and that everything goes smoothly, even if you have a good idea of what you want. And if the pension pot you wish to transfer is valued at £30,000 or more, it’s a legal requirement.
Don’t forget that independent pension advisors have a comprehensive view of the available products and their pros and cons, as well as some that aren’t even available direct to the public, so by applying directly you could be missing out on some of the best deals.
The advisors we work with have access to the entire pensions market and offer a bespoke service that will help you find the perfect solution in line with your priorities.
Speak to an expert today!
Ready to explore your options with a view to making a seamless switch to a new pensions provider? The independent advisors we work with are ideally placed to assist you through the transfer process from start to finish and will make it their mission to find you a product that better meets your needs.
To arrange a free, introductory, no-obligation consultation, give us a call on 0808 189 0463 or make an enquiry.