Pension transfers

What is a pension transfer?

A pension transfer is when you move some or all of your pension savings from one pension plan to another.

We no longer live in a world where a job is for life. Many of us will work for different employers over the course of our careers, with each new job bringing its own pension savings plan. Over time, the money you save into your pension may become spread across plans with several different providers.

As you accumulate different pensions, you may decide that transferring all of your pension savings into one plan is the right thing to do. Bringing your pensions together in this way is also sometimes called 'combining your pensions' or 'pension consolidation'.

Why transfer?

Most pension plans allow you to transfer your savings to another plan, either with the same provider or with a different one. But you might be wondering if it’s better to keep your pension separate or combine them into one pension plan.

There isn't really a simple answer. It depends on your personal circumstances and the pensions you have.

There are pros and cons to transferring your pension. It's very important that you understand and think about all the advantages and disadvantages to make sure that a pension transfer is the best choice for you.

There's no guarantee that transferring or combining your pensions will give you a higher income or bigger pension pot. Your pension is invested, it's value can go down as well as up and you could get back less than you invested.

Advantages and disadvantages of transferring