A pension transfer deadline is the date your current transfer value is guaranteed until. Here are the key things you need to know:
- It usually applies to defined benefit (DB) pensions.
- You don’t have to transfer before the deadline.
- A deadline usually lasts three months.
- Your transfer value might change if you transfer after the deadline.
- You can’t transfer out of public sector defined benefit pensions. An exception to this is the Local Government Pension Scheme.
A deadline shouldn’t put you under pressure, it simply tells you how long your quoted transfer value is guaranteed, so you can take the time to make the decision that’s right for you.
The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) say “it will be in most people’s best interests to keep their DB pension”1.
When and why will I be given a pension transfer deadline?
You’ll be given a pension transfer deadline when you request a transfer value for your defined benefit pension – usually three months.
The transfer value, known as a cash equivalent transfer value (CETV), is the lump sum your pension scheme offers if you want to transfer your benefits to a defined contribution pension. The value depends on things like interest rates and market conditions at the time.
The reason you have a deadline is because your transfer value can’t be guaranteed forever.
Is there anything I need to do before the deadline?
Use this checklist to make the most of the time before your deadline:
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Take financial advice if your transfer value (CETV) is more than £30,000.
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Check your deadline and how much time you have.
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Understand your current pension benefits and what you could lose by transferring.
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Review the transfer value you’ve been quoted.
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Consider your plans for your pension.
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Compare transferring vs leaving your pension where it is.
These steps can help you make a confident and informed decision. Our guide on defined benefit transfers can help you understand the potential benefits, risks and considerations to consider.
Do I need to decide to transfer before the deadline?
No, you can take your time to make a decision. It’s a good opportunity to:
- Understand the features of your current pension.
- Compare your options.
- Get financial advice if you need it.
It’s usually a good idea to speak to a financial adviser before requesting your cash equivalent transfer value (CETV), so you can make the most of the time available in your transfer deadline to complete the advice process and transfer if you choose to do so.
What happens if I miss the pension transfer deadline?
If you miss your pension transfer deadline nothing happens to your pension, but your transfer value can change.
Can I still transfer after the deadline?
Yes, you can still transfer your pension after the deadline. Missing it doesn’t mean you can’t move it, but you’ll need to request another transfer value.
Pension scheme members have a legal right to one free CETV every year. The scheme doesn’t have to provide another and if they do there may be a charge.
If you do receive another CETV then your new transfer value may be higher or lower than your previous one.
Will my transfer value stay the same?
Your transfer value might not stay the same and could go up or down over time, as it's affected by factors like interest rates and market conditions.
How long is a pension transfer deadline?
In most cases your transfer value is valid for three months, so the deadline to make a decision is usually the same. Sometimes the timeframe can be different, so it’s worth checking with your provider.
Frequently asked questions
Is a pension transfer deadline legally binding?
A pension transfer deadline is set by the pension scheme. Once the deadline has passed, they don’t need to honour the CETV they originally offered.
Can I extend a pension transfer deadline?
Usually not. Once your current transfer value expires, you can ask for a new one. However, your pension scheme doesn’t have to provide another within 12 months of your last CETV and may charge you if they do.
Do all pensions have transfer deadlines?
No. Transfer deadlines are most common with defined benefit pensions, where a guaranteed value is provided for a limited time.
How often can I request a cash equivalent transfer value (CETV)?
This depends on your provider. In many cases, you can get a free CETV every 12 months.
Is it better to wait for a new transfer value?
Transfer values can go up or down, so waiting might mean your get more or less than your original transfer value.
1Financial Conduct Authority, Considering a pension transfer: DB - Considering a pension transfer: DB | FCA
