Are you thinking about making a pension transfer from one pension company to another? Read on to learn about the key things to consider when making a decision.
Ease and convenience
It can be hard to keep track of lots of different pensions. Having your pension savings in one place makes it easier to keep track, and can help you feel in control of planning your retirement.
You might want to transfer if your new pension provider charges lower fees.
Flexibility at retirement
Your current provider might not offer the full range of retirement options. Most providers are likely to offer you flexibility at retirement. But it's worth checking so that when you come to retire, you can take your pension savings in a way that suits you.
You should check to see what costs are involved in transferring, like transfer fees or charges for independent financial advice.
You might lose valuable benefits
Depending on how long your plan has been active, you might have special benefits which may be lost if you transfer.
There’s no guarantee that any new investment choice will perform better than your previous providers.
Small pension pots come with advantages that can be useful. For example, you can cash in small pots of less than £10,000 and continue to pay into another pension up to the annual allowance of £40,000.
3. Should I speak to a financial adviser?
An adviser can look at your overall finances to help:
- Understand your needs
- Discuss potential solutions
- Draw up a short list of options and providers
- Highlight the pros and cons
- Make a recommendation
Advisers may charge for their services – though they should agree any fees with you upfront.
More on pensions and retirement
How to prepare your pension for retirement
With pension freedoms providing a more flexible way of accessing your hard-earned cash, it's important to know what the options are.
What is a pension?
Here you’ll find a quick guide to the different types of pension and the benefits of saving for retirement.