A pension transfer is when you move some or all your pension from one scheme to another. Many people transfer their pensions to reduce charges or make them easier to manage.
Transferring your pension usually involves:
- Gathering the details of your existing pensions
- Checking their value, fees and any valuable benefits
- Choosing a new provider
- Requesting the transfer.
Most transfers take 4 to 12 weeks, depending on the type of pension and your provider.
Pension transfers at a glance
- A pension transfer moves pensions from one pension scheme to another.
- Transfers typically take 4 to 12 weeks, but can take longer for more complex transfers.
- You could lose guarantees and benefits when transferring.
- You don’t need to transfer your full pension, most providers allow a partial transfer.
- Financial advice is required to transfer a defined benefit pension worth £30,000 or more.
Why do people transfer their pensions?
You might decide to transfer your pensions because having them in one place can make them easier to manage. For example, you might have eight pension pots and want to move them into one pension pot, or you might want to move six of the eight together and keep two pensions separate.
Here are some of the benefits to think about:
- Easier to manage – you'll manage less pension plans
- Potential for lower charges - you may be able to reduce your overall costs
- More control over your investments – monitor how your investments are performing
- Different investment options – access to investments that better suit your goals
- Simpler access to your money – more flexibility at retirement.
There are disadvantages too. For example, you might lose valuable benefits like a guaranteed pension for the rest of your life or being able to access your pension at a younger age.
Combining pensions can offer a range of benefits, but it's not right for everyone. Our should I transfer my pension guide can help you understand if it’s the right decision for you.
If you’re unsure if your pension has specific benefits or guarantees, it’s recommended to speak to a financial adviser. If you don’t have one, our getting financial advice guide can show you how to get started.
What's the difference between pension transfers and pension consolidation?
There isn’t one. You might hear different terms used when talking about moving your pension. The most common phrases are consolidating, combining, switching and transferring. They all refer to moving your pension or pensions from one pension scheme to another.
Can I transfer my pension?
Most people with defined contribution pensions can transfer their pension, but what you can do will depend on the type of pension you have and your provider’s rules.
What type of pension do I have and can I transfer?
The two main types of pensions in the UK are:
- Defined contribution pensions (this is a pot of money where you, and your employer, if you have one, pay in).
- Defined benefit pensions (also known as final salary or career average pensions).
The rules, risks and benefits can be very different for each, so it's important to understand which type of pension you have before you transfer.
| Defined contribution pension | Defined benefit pension | |
| What’s the difference? | Pension savings built up through contributions and investment growth. | A guaranteed income for life based on your salary and how long you work for your employer. |
| Can I transfer? | Usually yes – most defined contribution pensions can be transferred or combined. | Public sector pension schemes, which are the only defined benefit pensions open to the public now, can only be transferred if they are funded. The Local Government Pension scheme is the main funded pension scheme. |
| What happens if I transfer? | The full or partial value of your pension pot is moved or combined into another plan. | You’ll usually give up any guaranteed income for yourself and potentially for any spouse, civil partner or dependant children when you transfer to another provider. |
| Do I need financial advice? | Not usually required, but it may be helpful depending on your situation and if your pension has any valuable guarantees. | Yes. If your pension is worth more than £30,000, you're required to take financial advice. |
| What are the risks? | The value of your pension pot can go up and down based on investment performance. | You'll lose any guaranteed income and protected benefits, and you’ll need to make sure that your pension lasts for your whole life. |
Remember
Transferring a defined benefit pension is a big decision because it means giving up guaranteed income for life.
When might transferring my pension not be right for me?
Transferring isn't always the best option for everyone. It's worth thinking carefully before transferring if:
- You could lose valuable benefits or guarantees that can't be replaced.
- You already have a pension that meets your needs.
- You could pay higher fees or charges.
- You have up to three smaller pensions and still want to pay into pensions.
- You’re working and you want to move the pension which your employer is paying into, to another pension as you’d lose valuable employer pension contributions.
Read our should I transfer my pension guide to find out more about whether transferring your pension is right for you.
How do I transfer my pension?
Most pension transfers follow the same steps:
- Find your pensions - locate the pensions you want to transfer. If you’ve lost track of a pension, you can use the government’s free Pension Tracing Service (opens in a new window) to find it.
- Check fees and benefits – consider any fees you may pay and benefits you could lose.
- Compare pension providers – a financial adviser can help if you're unsure where to start.
- Decide whether you want to transfer – once you’ve reviewed your options, decide if it’s right for you.
- Gather your details – you'll need your personal details, new provider information, plan number, transfer value and proof of identity.
- Request the transfer – find out if you can submit this online or contact your new pension provider.
- Wait for completion.
- Receive confirmation – once the transfer is complete, you’ll receive confirmation from your new provider.
What happens after I apply?
Once you’ve requested a pension transfer, your new provider will usually contact your existing provider to arrange the transfer for you.
During this time:
- Your providers will check your details and confirm the transfer can go ahead.
- Your investments may be sold before being moved, depending on the type of transfer.
- Your money will be securely transferred.
- You’ll usually be updated on progress by your provider.
Your old pension will either:
- Close if you’ve transferred the entire value
- Reduce in value if you’ve only transferred part of it.
Remember
If you’re transferring a defined benefit pension worth over £30,000, you're required to take financial advice, and the transfer process may differ.
How long does a pension transfer take?
How long it takes to transfer a pension depends on the type of pension you're transferring and whether the transfer can be completed electronically.
| Type of transfer | Typical timescales |
| Defined contribution to defined contribution (electronic) | Around four weeks |
| Defined contribution to defined contribution (manual) | Four to eight weeks |
| Defined benefit to defined contribution | Three to six months |
- Electronic transfers are usually the quickest way to transfer a pension because they don't require paperwork. Many defined contribution pensions can be transferred online through a website or app.
- Manual transfers involve paperwork and usually take longer. This may include completing, signing and returning forms by post.
How much does it cost to transfer a pension?
The cost of transferring a pension varies depending on your pension, provider and whether you choose to take financial advice. To understand what costs you might pay read our handy guide on pension transfers charges and fees.
How can I avoid pension transfer scams?
Pension transfer scams can be difficult to spot, especially as scammers are becoming more sophisticated. Being aware of the risks can help you protect your pension. Common warning signs include:
- Unexpected contact about your pension – cold calling about pensions is illegal in the UK, so be cautious of unsolicited calls, emails or messages.
- Offers of a free pension review – scammers may use these to gain access to your personal information or persuade you to transfer your pension.
- Promises of early access to your pension – you can't usually access your pension before age 55 (rising to 57 in 2028), except in certain circumstances, like ill health.
- Promises of high or guaranteed returns – be wary of anyone encouraging you to transfer your pension into investments that sound too good to be true.
Before transferring your pension, check that any adviser or firm is authorised (opens in a new window) by the financial services regulator, the Financial Conduct Authority (FCA).
If you think you've been targeted by a pension scam, contact your pension provider immediately and ask them to pause any planned transfers. You can also report the suspected scam to the FCA.
Frequently asked questions
Will I lose tax relief if I transfer my pension?
No. Transferring your pension doesn't affect the tax relief you've already received.
Do I need financial advice to transfer my pension?
You must take financial advice if you're transferring a defined benefit pension worth more than £30,000. For most other pensions, advice isn't usually required but may still be helpful.
Can I transfer my pension to someone else?
No. Pensions can’t be transferred to another person. The only exception is if there is divorce. Find more information on how pensions are shared on divorce in our guide.
Can I transfer a pension I’m already taking money from?
Yes, if you have a defined contribution pension. If you have moved pension money into drawdown then you can do normally do a drawdown to drawdown transfer. If you have taken cash lump sums from the pension then you can transfer the rest of the pension to another pension or you can move it into drawdown or buy an annuity.
Once you have started taking income from a defined benefit pension then you can’t transfer it.
Can I cancel a pension transfer?
It depends on the type of pension you're transferring and how far the transfer has progressed. Some pension transfers can be cancelled within a cancellation period, but once a transfer has been completed it usually can't be reversed.
Can a pension transfer be declined?
Yes, a pension transfer can sometimes be declined. Your provider could decline a transfer if they’re concerned about a potential pension scam, if the receiving scheme doesn't meet certain requirements or if additional information is needed.
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