Pension Transfers

If you have pension benefits left with an old employer, it is quite likely that you may not have heard from the scheme for some time. This is not unusual, and is not necessarily a cause for concern.

You may be wondering, though, whether you should leave the pension where it is, or arrange a pension transfer to move it somewhere else. You have a number of choices including:

  • Leave it where it is.

  • Transfer it to your current employers pension scheme (if they will allow this).

  • Transfer it to another pension arrangement of your choosing.

  • Take your pension now (if you qualify).


    • The decision is difficult to make, as each of the options may lead to different results in respect of:

  • How much pension income you will receive.

  • How your pension income increases in retirement.

  • How much tax-free cash you can take from your pension at retirement.

  • The amount of any spouse’s pension or dependent’s pension.

  • Benefits on death before retirement.


    • Issues that also need to be considered include any concerns that you may have about your former employers, whether you value personal control of your pension arrangements, your attitude to investment risk, and your overall financial situation, both now and when you retire.

    All of these matters can have a significant effect on what is best for you.

    For further information on company pension schemes, visit our Company Pensions section.

    The advice process



    A first meeting concentrates on establishing your priorities for your pension, and discovering detail of any facts that will affect your situation in retirement. You will be asked to provide authority for the adviser to contact the company scheme for information.

    Consideration of a transfer is a detailed process, and a great deal of information needs to be obtained from the former employer’s scheme. This can be difficult to obtain and usually leads to delays.

    Once sufficient information has been obtained, detailed analysis is made of differences between the existing scheme and any alternatives. In order to make a true comparison of possible benefits, it is necessary to commission actuarial calculations.

    Once the analysis has been carried out a meeting is arranged, to discuss the findings and to see how they affect your preferences. A course of action is then agreed in principle.

    Your input is invited at all stages, since your views may change as you gain a better understanding of your pension plans, and this may affect the recommendation that is eventually made.

    You will receive a detailed report covering all relevant facts, and making a formal recommendation of the way forward. If you agree with the recommendation, they are then acted on.

    Adviser Qualifications



    Transferring a pension fund from an occupational scheme is an area that can only be advised on by an adviser who has appropriate qualification and is registered with the Financial Services Authority as a pension transfer specialist.

    Martin Fishburn, principal of Capital Ideas, has passed the Chartered Insurance Institute’s Advanced Financial Planning Certificate module G60 (Pensions), which is an appropriate qualification. He is registered as a pension transfer specialist and his detail can be checked at www.fsa.gov.uk. His FSA registration number is MAF00011.

    Please contact us to arrange a formal review of your pension scheme/s.