Can I Transfer My Workplace Pension?
When people change jobs or review their retirement savings, a common question is whether a workplace pension can be transferred to another scheme.
In many situations, workplace pensions can be transferred to another provider. However, the rules can vary depending on the type of pension scheme and the provider involved.
Understanding how pension transfers work can help you decide whether leaving a pension where it is, transferring it to another scheme, or reviewing your pensions more broadly may be appropriate for your circumstances.
In this article
Quick Summary
This may help you:
- Understand how workplace pension transfers work
- Know when people consider transferring pensions
- Understand factors to review before moving a pension
- Recognise when financial guidance may be helpful
Before deciding, check:
- Charges and exit fees within the pension
- Investment options available in each scheme
- Whether the pension includes guarantees
- How the transfer fits into overall retirement planning
Part of the Pension Consolidation & Transfers series
- Can I Transfer My Workplace Pension?
- Should I Combine My Pensions?
- Is Pension Consolidation Worth It?
- Multiple Pension Pots Explained
What Is A Workplace Pension Transfer?
A pension transfer involves moving the value of a pension from one provider to another.
For example, someone may transfer a pension from a previous employer's scheme into a personal pension or another existing pension plan.
The process typically involves the new pension provider requesting the transfer from the existing provider. Once the transfer is complete, the pension savings are invested within the new scheme.
Transfers are sometimes considered when people accumulate several pensions over time.
Our article on multiple pension pots explained describes why this situation is common for many workers in the UK.
Why People Consider Transferring Workplace Pensions
There are several reasons why individuals explore transferring workplace pensions.
Simplifying pension management — Having several pensions across different providers can make retirement planning harder to manage. Some people therefore transfer pensions into one scheme so they can see their retirement savings in one place.
Reviewing investment options — Different pension providers offer different investment funds and strategies. Some people review these options when deciding whether to transfer a pension.
Comparing pension charges — Charges can vary between pension providers. When reviewing their pensions, some people compare fees across providers before deciding whether a transfer may be appropriate.
Many of these considerations are discussed further in our article on should you combine your pensions.
Situations Where Pension Transfers May Not Be Suitable
Although many pensions can be transferred, there are situations where transferring may not be appropriate.
Pensions with valuable guarantees — Some older pensions include guarantees such as guaranteed annuity rates. Transferring the pension may mean losing these benefits.
Defined benefit pensions — Defined benefit schemes provide a guaranteed retirement income based on salary and years of service. Transferring these pensions may involve additional regulatory requirements.
Exit fees — Some pension providers apply exit charges when transferring funds to another scheme.
Because of these factors, people often review the details of their pension before deciding whether to transfer.
MoneyHelper — the UK's government-backed financial guidance service — provides impartial guidance on pension transfers.
When People Review Pension Transfers
Pension transfers are often reviewed during certain life events.
Common situations include:
- Changing jobs
- Approaching retirement
- Reviewing multiple pension pots
- Comparing pension charges and investments
For example, someone who has built up several pensions during their career may review whether transferring pensions could simplify their retirement planning.
Our article on pensions from previous employers explains why many people accumulate multiple pensions.
When Financial Guidance May Help
Pension transfers can sometimes involve complex considerations.
Some people consider seeking financial guidance when:
- They are unsure about pension guarantees
- They have several pensions with different providers
- They want to review investment strategies
- They are considering consolidating pensions
A regulated financial adviser can review pension details and explain how different options may affect long-term retirement planning.
Key Considerations
| Factor | Why It Matters |
|---|---|
| Pension type | Defined benefit and defined contribution pensions have different rules |
| Exit fees | Some providers charge fees when transferring pensions |
| Guarantees | Certain benefits may be lost when transferring |
| Investment options | Different providers offer different funds |
| Administration | Consolidating pensions may simplify retirement planning |
Frequently Asked Questions
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Financial planning decisions depend on individual circumstances. If you would like clarity on how the topics discussed may apply to your situation, TrustEvo can connect you with a regulated financial adviser.
This article is provided for general information only and does not constitute financial advice. Financial decisions depend on individual circumstances and regulated financial advice may be appropriate in some situations.