Pension transfer options

What is a pension transfer?

A pension transfer involves moving a pension from one provider to another. 

The majority of pension schemes can be transferred. For example, you could transfer your old pension(s) to a personal pension such as a SIPP (self-invested personal pension). 

Pension transfer options

If you’ve had more than one job in your lifetime, it’s likely you’re a member of more than one pension scheme. You could consolidate your pensions by transferring them individually into one scheme. This might make it easier to track and manage your finances. 

Alternatively, you may simply wish to switch pension providers if you feel you could get a better deal elsewhere. 

Things to consider before transferring a pension

Transferring your pension may not always be beneficial. There are a number of factors you should consider before transferring. 

Guaranteed /safeguarded benefits

Some schemes offer guarantees and benefits – such as guaranteed annuity rates, the option to take more than 25% tax-free and access to benefits before you reach 55. By transferring to a new scheme, you could lose these benefits. 

Employer contributions

Before you transfer from your current workplace pension, check your employer will still contribute as much to your new scheme. You might be better off transferring your old pensions, but keeping your existing workplace pension.

Exit fees

Some schemes charge exit fees. The fee may outweigh the benefits of moving – particularly if you transfer a small pension.

Defined benefit schemes

Defined benefit pension schemes offer a guaranteed annual income in retirement. It is rarely beneficial to transfer out of a defined benefit pension as you will lose a guaranteed income for life.

We recommend speaking to a financial advisor before transferring any kind of pension.

What pensions can I transfer to interactive investor?

You can transfer the following types of pension into our SIPP:

• Personal Pension Plans
• Pensions in drawdown
• Other SIPPs
• Some workplace pensions
• Stakeholder Pension Plans
• Frozen pensions
• Retirement Annuity Plans
• Executive Pension Plans (EPPs)
• Occupational Money Purchase Plans
• Small Self-Administered Schemes (SSAS)
• Defined Contribution Pension Schemes

In some cases, we will accept the transfer of defined benefit pensions. 

If you wish to transfer a defined benefit pension with a value over £30,000, legally you must seek confirmation from a pension transfer adviser that the transfer will be in your best interests. 

We still recommend you seek independent professional advice from a financial advisor before you transfer if the value of your defined benefit pension is less than £30,000.

How long will my transfer take with ii?

If you transfer your pension as a cash payment, it usually takes between 2 – 6 weeks to complete. For cash transfers, you must sell your existing stocks before transferring.

If you’d like to keep your existing investments, the transfer will take longer. It usually takes 8 – 12 weeks but it depends on the type of investments you hold. 

The length of time the transfer takes will also be reliant on how quickly your current provider works with us to complete it. 

If you are transferring a defined benefit pension or a Small Self-Administered Scheme (SSAS), the timeframes shown are not representative. For these schemes, transfers may take considerably longer.

Tracking and transferring lost pensions

If you need help finding a lost pension, visit the government’s pension tracing website . It will help you find the contact details of a lost pension scheme.

What are pension transfer charges?

Some providers charge a fee to transfer your pension and these fees can vary.

At ii we do not charge either transfer or exit fees. However, your existing provider may, so it is important to check before you transfer.