How long does a pension transfer take?

The time it takes to transfer a pension can vary. Most transfers take weeks or even months due to complexities and regulatory factors, such as those outlined in The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021. In exceptional cases where all requirements are met promptly, the process can be quicker. Setting realistic expectations is crucial.

In some cases, such as when your pension scheme is complex or if there are concerns about the suitability of the transfer, you may be required to attend an appointment with MoneyHelper, which your existing scheme will make you aware of.

Being aware of these factors can save you from unrealistic timelines and frustrations.

One of the big factors affecting the timeline of a pension transfer is the type of pension you have. Generally, if you have a defined benefit pension these will take longer as they have additional benefits that will need to be researched. Whereas a defined contribution pension is usually somewhat simple.

Find out what you need to know about defined benefit transfers.

Under Section 49 of the Pension Schemes Act 2015, you are required to take financial advice before transferring if the transfer value of your defined pension is over £30,000. Although this is not a requirement from The Financial Conduct Authority (FCA), we still recommend getting advice for any amount below £30,000 to help you understand the implications of your decision. Some providers may still insist on advice being obtained even for transfers below this threshold.

Please be aware that obtaining financial advice may incur a fee, which varies by provider.

Provider responsiveness 

Before we dive into the overall timelines, it’s essential to understand that the pension transfer process also involves initial data gathering and processing of the transfer application, each will influence the timeframe differently.  

Varying timescales and demand can have a major impact on your pension transfer. Your provider’s timeline could change depending on demand, the circumstances of your request, and the time of year. If the provider you are using has long turnaround times, it could potentially impact your timelines. 

There are three ways to transfer pensions. Let’s look at these now and how each one can affect how long the process takes.

Electronic transfers

Electronic transfers are generally the quickest transfer process. However, some providers use a system called Origo for their electronic transfers, which can still take time, depending on specific conditions. For instance, if your investments need to be sold and turned into cash or if your transfer requires additional verification under legal regulations, this can extend the process.

Even when your new scheme requests a transfer via this system, your existing scheme may still require additional information to complete the due diligence as mandated by legislation.

Manual transfers

Transfers done manually, or by transfer paperwork, can take significantly longer than electronic transfers. This involves multiple steps, such as signing and verifying documents and coordinating between your old pension provider and your new provider. 

Your existing provider may also require you to attend a safeguarding appointment with MoneyHelper prior to agreeing to make the transfer.

Overseas transfer

If you’re wanting to transfer your pension abroad, there may be separate or additional forms you will need to fill in, as well as additional evidence to provide about your residency. You may also incur an Overseas Transfer Charge on the amount you wish to transfer.

Each country will have their own financial regulations, so you’d need to check HMRC’s QROPS  ^{Footnote [1]}  list to ensure the overseas scheme you’re transferring to is a Qualifying Recognised Overseas Pension (QROPS).

Some top tips for a smooth transfer:

• Be aware that your current provider may not be able to provide exact timescales depending on due diligence.
• Allow plenty of time, as you may be required to attend a MoneyHelper safeguarding appointment.
• Make sure you have all the required documents signed and ready at the same time so you can send them in one go.
• When you start the transfer process, ask the providers what their current turnaround time is.
• If you can, keep an eye on your transfer online rather than calling your providers.
• Keep an eye on your emails, as there may be things you need to sign electronically. And any additional information you need to provide.
• Make your new provider aware of how you want your old pension to be invested when it’s transferred.

For impartial guidance and advice, visit MoneyHelper or Unbiased. Please note that an adviser from Unbiased will charge for their services.