Personal Pension Transfer

There are lots of reasons why you might want to transfer a personal pension to a new provider or plan, from seeking a better plan in terms of risks versus rewards, to taking advantage of the Pension Freedom benefits that came into full effect in 2015.

But which schemes can you transfer your pension money into, what are the risks and benefits, and how easy will it be for you to make the switch?

In this guide, we’ll explore the options and cover the steps you need to take when transferring your personal pension, whether you want greater investment choice, to consolidate your pensions in one place, to find a cheaper plan or move your personal plan into a workplace scheme.

To help you understand your options, we’ll cover the following topics:

Transferring a personal pension: the basics

Personal pensions offer plenty of flexibility when it comes to transferring your money, and with no employer benefits to consider, the process should be relatively straightforward.

The main things to consider will be how moving your pension savings will benefit you, what it will cost in terms of fees and transfer value, whether your existing plan has any perks that are too good to give up, and what you want to gain from switching.

For a more in-depth look at the wider topic of transferring a pension of any type, take a look at our comprehensive guide to pension transfers.

Can I move my personal pension?

It’s nearly always possible to transfer out of your current personal pension scheme if you wish to do so.

However, you’ll need to find a provider and scheme type that will accept inbound transfers, and if your reason for switching is to reduce costs, you’ll also want to ensure that the overall saving will offset any exit fees you might be charged.

How to transfer a personal pension

Once you’ve decided to go ahead with a personal pension transfer and have identified a new scheme to move your money into, you’ll need to inform the existing provider of your plans in writing, and request an up-to-date summary of your benefits called a ‘statement of entitlement’ at the same time. This information will be used to enable the new provider to complete the transfer.

Every provider has slightly different rules around transfers, so in some cases you may be subject to exit fees or other penalties. This is more likely to be the case if you’re moving from a private pension plan, since the owners of these schemes have complete freedom to set their own fees.

You should also consult with an independent pensions advisor before you get started, so you can ensure the transfer is in your best interest. Make an enquiry and we’ll introduce you to a specialist who will carry out a free pension review to help you make an informed decision.

What is meant by ‘Personal pension transfer value’?

The transfer value of your pension is the amount that your current pension fund would be worth if you were to transfer it to a new provider. It’s important to be aware that this value could turn out to be lower than your existing pension fund value.

If the value of your pension pot is £30,000 or more it’s essential that you seek professional advice and assistance in enacting the transfer. This is a legal requirement and is intended to protect your savings. To speak to a qualified pensions adviser who can help with such a transfer, please make an enquiry and we’ll be happy to refer you to a suitable expert.

Can I transfer my personal pension to a SIPP?

If you want more control and choice over where your money is invested, you have the option to transfer all or some of the savings held in your personal pension to a SIPP (Self Invested Personal Pension). Most SIPP providers accept transfers from a wide range of personal pension schemes, but fees and minimum amounts will vary between providers.

How to transfer a personal pension to a SIPP

• Find a suitable SIPP provider that accepts transfers from your current scheme.
• Contact your current provider to obtain a transfer value and register your intention to move your money into your chosen SIPP.
• If the transfer value is £30,000 or more, or if you would benefit from professional advice, find an independent financial advisor to oversee the transfer.

The experts we work with have helped countless customers to successfully transfer personal pensions into SIPPs, and are ideally placed to assist you – from scouring the market to find the lowest fees, the best benefits and the most flexible access to the investment types you want, to enacting the transfer and ensuring everything goes through smoothly.

If you’d like to speak to one of the pensions specialists on our books, don’t hesitate to make an enquiry and we’ll be happy to match you with the best advisor for your needs.

Transferring a SIPP to a personal pension

If you currently have pension money invested in a SIPP and want to switch to a more standard personal pension, this is also possible. You’ll need to find a suitable personal pension scheme, either by conducting your own research or working with an advisor, and follow the same steps described above with the aim of moving out of the SIPP.

An additional step when transferring out of a SIPP is the option of selling off some of your investments before transferring. You may want to consider doing this before leaving the scheme or you can simply move them, at their current value, at the time of the transfer.

Speak to an expert on personal pension transfer today

For bespoke advice on personal pension transfers, call Online Money Advisor on 0808 189 0463 or make an enquiry online, and we’ll be in touch soon to discuss your requirements free of charge.

The experts we work with are experienced in helping our customers find the ideal solution to reach their personal pension goals.