How do I transfer my pension from one company to another?

To answer this question you need to consider if you are looking to transfer from one Defined Benefit (DB) or Final Salary pension scheme from a previous employment to another DB scheme.

Or

Are you looking to transfer a pension from one Money Purchase style scheme to another (also known as a Defined Contribution or DC scheme).

Defined Benefit (DB) or Final Salary Pension

In reality, this now would be quite rare as there are so few active DB schemes. Any DB schemes still open would most likely refuse this sort of transfer as this is transferring the liability. So you are very unlikely to be able to carry out this sort of pension transfer.

Money Purchase (Defined Contribution) Pensions

On the other hand you can transfer a pension from one company to another. You can approach the current scheme and obtain transfer paperwork and at the same time obtain the paperwork from the new company you wish to transfer to.

The new company you are transferring to will need you to select the funds you wish to invest into.

Before doing so you’ll need to have your attitude to risk measured using a risk profiling tool.

Attitude to Risk is how you think about money and how you may feel when if you see your fund decrease in value if stock markets go down. How you would feel about volatility when you see the value of your pension fluctuate in the short term?

There are lots of different pension providers around, and you need to be sure to choose which one will be the most suitable and give you all the flexibility and freedom you need when you want to start taking your pension.

There are over 3000 funds to choose from to invest your pension fund into.

Not all funds perform in the same way and the key to achieving the best possible return is to have a mixed or diversified set of funds. It also worth bearing in mind that the returns of the funds need to be reviewed to ensure the best possible funds are selected.

Some analysis will be required to look at the charges in the old company compared to the new company. It is worth bearing in mind cheaper pensions are unlikely to offer full flexibility when you come to take your pension and tax-free cash when you retire.

There is a reason why some pension providers are more expensive than others. Seeking Independent Financial Advice can help navigate you through which pensions are worth paying for.

Moving a pension from one employer to another

For many people their work life will involve changing employers. It may be possible to move a money purchase pension from one company to another. The employer will have employed the services of an adviser and you can approach them to assist with this.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).