Pension transfer

Combining your pensions could have its benefits

• There's only one fee
  Keeping track of lots of pensions can cost you time and money. Combining your pensions means there's only one fee to pay, which might be less than the combined fees from having several pensions.
• You could lower your percentage charge
  Some pensions may lower the percentage of the fee they charge when more money is invested in them.
• Simpler to manage
  Keep tabs on your progress and gain access to just one set of documents to manage your pension.
• Planning for the future
  A single pension could give you a clearer view of your retirement options and make decisions easier.

Some key considerations before combining your pensions:

• Exit costs
  Check if your existing provider will charge you an exit fee
  
  
• Investment fees
  Before you transfer, check how much your current pension provider charges and compare that with the charges of the pension you are transferring to, so you're aware of the difference.
  
  
• Pension benefits and guarantees
  Check your pensions for valuable benefits like a guaranteed income, the ability to take more than 25% as a tax-free lump sum, loyalty bonuses, life insurance and early access to your savings, as you could lose these by transferring from your existing pensions.
  
  
• Putting your investments on hold
  Your provider may be able to transfer some or all of the funds directly from existing pensions, meaning they stay invested throughout the process. When this isn't possible, existing investments will have to be sold and the value transferred as cash - this means there may be a period when your money is out of the market and will not benefit from any investment gains or suffer any losses from market movements.
  
  
• You're not guaranteed to be better off
  Although bringing all your pensions together can have many benefits, there's no guarantee that you'll be better off in retirement.
  
  
• There are some pensions you may not be able to move. Please check with your pension provider before transferring:
     a Defined contribution pensions with a guaranteed annuity rate, safeguarded benefits or guaranteed income
     b Defined benefit pensions, which pay you an income based on how long you've been in that employer's scheme and how much you earned when you left or retired
     c Pensions you’ve already taken money from
  
  
• Employer contributions
  If your employer pays into your pension, you'll need to talk to them before transferring, as a transfer may mean they stop paying into it.