Pension Transfers
Can you transfer workplace pensions? Understand how to consolidate pension pots and transfer between schemes.
Last updated: 30 January 2025
Pension transfers allow you to consolidate or move your retirement savings.
Transfer Basics
What Is a Transfer
| Element | Detail |
|---|---|
| Moving | Pension savings |
| From one scheme | To another |
| Value transfers | Usually cash |
| Rights preserved | In new scheme |
When People Transfer
| Reason | Situation |
|---|---|
| Leaving job | Old employer's scheme |
| Consolidating | Multiple small pots |
| Better options | Different provider |
| Lower fees | Cost saving |
Types of Transfers
Between DC Schemes
| Transfer | Detail |
|---|---|
| Most common | For auto-enrolment |
| Cash value | Moves |
| Straightforward | Usually |
| Within months | Typically |
DC to DC
| From | To |
|---|---|
| Workplace pension | Personal pension |
| Old employer scheme | New employer scheme |
| Multiple pots | One consolidated |
During Employment
While Contributing
| Position | Detail |
|---|---|
| Some schemes | Allow transfers |
| Some schemes | Restrict |
| Check rules | With provider |
| May need | To stop contributing |
After Leaving
| Position | Detail |
|---|---|
| Can transfer | Usually |
| No ongoing | Contributions |
| Full value | Available |
| Your choice | Where goes |
Transfer Process
Steps
| Step | Action |
|---|---|
| 1 | Choose receiving scheme |
| 2 | Request transfer value |
| 3 | Complete transfer forms |
| 4 | Schemes communicate |
| 5 | Value transfers |
Timeline
| Stage | Typical Time |
|---|---|
| Transfer value | 1-2 weeks |
| Processing | 4-8 weeks |
| Total | 2-3 months |
Transfer Value
How Calculated
| DC Schemes | Detail |
|---|---|
| Your pot value | On transfer date |
| Investments sold | If applicable |
| Cash value | Calculated |
| May fluctuate | With markets |
Guaranteed Value
| Position | Detail |
|---|---|
| No guarantee | Of amount |
| Market dependent | Usually |
| Check timing | If concerned |
Exit Fees
Position
| Type | Fee Status |
|---|---|
| Auto-enrolment schemes | Exit fees banned |
| Since 2017 | For most members |
| Cannot charge | To transfer out |
What's Not Banned
| May Apply | Detail |
|---|---|
| Market value adjustments | Some with-profits |
| Very old schemes | Pre-2017 rules |
| Check | Your scheme |
Receiving Scheme
Choosing Where
| Consider | Factor |
|---|---|
| Fees | Lower is better |
| Investment options | What's available |
| Service | Provider quality |
| Access | Online tools |
Options
| Destination | Detail |
|---|---|
| New employer scheme | If good |
| Personal pension | SIPP or provider |
| Same provider | Combine pots |
Benefits to Check
Before Transferring
| Check For | Importance |
|---|---|
| Guaranteed annuity rates | Valuable - don't lose |
| Protected pension age | May be lower than 57 |
| Life cover | Linked to scheme |
| Employer contributions | Still getting? |
Valuable Benefits
| Benefit | Detail |
|---|---|
| GAR | Guaranteed income rates |
| Lower pension age | Can access earlier |
| With-profits bonuses | May lose |
Advice Requirement
Over £30,000
| Rule | Detail |
|---|---|
| Pots over £30,000 | Advice required |
| DB transfers | Must have advice |
| FCA regulated | Adviser |
| Cost | You pay |
Under £30,000
| Position | Detail |
|---|---|
| No requirement | For advice |
| Can transfer | Directly |
| Still wise | To check carefully |
Consolidation Benefits
Advantages
| Benefit | Detail |
|---|---|
| One place | Easier tracking |
| One set of fees | Potentially lower |
| One investment choice | Simpler |
| Retirement planning | Easier |
Potential Drawbacks
| Risk | Detail |
|---|---|
| Lose benefits | From old scheme |
| Market timing | Of transfer |
| Charges | In new scheme |
| Wrong decision | Research first |
NEST Transfers
Transfers Out
| Position | Detail |
|---|---|
| Can transfer out | Of NEST |
| To other scheme | Allowed |
| No exit fee | Applies |
| Process | Similar to others |
Transfers In
| Position | Detail |
|---|---|
| Can transfer in | To NEST |
| From other DC | Schemes |
| Consolidate | With NEST pot |
Tax Implications
No Tax on Transfer
| Position | Detail |
|---|---|
| Transfer | Not taxable |
| Value moves | Gross |
| No income | Recognised |
| Pension to pension | Tax-free move |
Still Tax-Sheltered
| New Scheme | Position |
|---|---|
| Same tax status | Maintained |
| Growth tax-free | Continues |
| Relief preserved | In new scheme |
Scam Warning
Red Flags
| Warning Sign | Detail |
|---|---|
| Cold calls | About transfers |
| Pressure tactics | Act now |
| Unusual investments | Overseas schemes |
| High returns | Promised |
Protect Yourself
| Action | Detail |
|---|---|
| Check FCA register | Legitimate adviser |
| Use pension scheme | Resources |
| Take time | No rush |
| Report suspicious | To FCA |
Employer Considerations
If Employee Wants Transfer In
| Position | Detail |
|---|---|
| No obligation | To accept |
| Scheme rules | Apply |
| May allow | Check with provider |
If Employee Wants Transfer Out
| Position | Detail |
|---|---|
| Their right | Generally |
| Provide information | When requested |
| No obstruction | Allow process |
Summary
Key Points
| Element | Detail |
|---|---|
| Transfers | Usually possible |
| Exit fees | Banned for most |
| Check benefits | Before moving |
| Advice needed | Over £30,000 |
Process
| Step | Action |
|---|---|
| Research | Both schemes |
| Request | Transfer value |
| Complete | Forms |
| Allow time | For processing |
Related answers
Choosing a Pension Provider
How do you choose a workplace pension provider? Compare options for auto-enrolment including NEST and other providers.
Pension Scheme Charges
What charges apply to workplace pensions? Understand annual management charges and how they affect pension pots.
Qualifying Pension Scheme
What is a qualifying pension scheme? Understand the requirements for auto-enrolment pension schemes.
Frequently Asked Questions
- Can I transfer my auto-enrolment pension to another provider?
- Yes, you can usually transfer your workplace pension to another scheme, either while still employed or after leaving. Some schemes have restrictions on transfers while you're still contributing. Check with your scheme about their transfer rules.
- Should I consolidate multiple pension pots?
- Consolidation can make tracking easier and potentially reduce fees. However, check you won't lose valuable benefits (guaranteed annuity rates, protected pension age) before transferring. For pots over £30,000, you should seek financial advice before transferring.
- Are there fees for transferring pensions?
- Exit fees are banned for most workplace pension transfers, so you shouldn't pay to leave. The receiving scheme may have setup fees, and there could be costs if transferring investments. Always check both schemes' terms before transferring.