Can I Transfer My Pension in 2025?

If you’ve accumulated one or more pensions over your career, you might be wondering:

“Can I transfer my pension?”

The short answer is yes - most pensions in the UK are transferable. But the better question is: Should you?

In this article, we’ll break down when and how you can transfer your pension, what types of pensions are transferable, the benefits and risks involved, and the situations where transferring could make strong financial sense, or when it could be a mistake.

Whether you’re approaching retirement or just consolidating old pensions, this guide is for you.

What Does It Mean to Transfer a Pension?

Transferring a pension means moving your pension savings from one pension scheme to another.

You aren’t withdrawing or spending the money, instead, you’re relocating your retirement pot to a new provider or plan that may better suit your needs.

You can transfer:

• A workplace pension from a former employer

• A personal pension you’ve set up yourself

• A defined benefit pension (with more care and under strict rules)

• Several pensions into a single consolidated plan

Transfers can offer benefits such as lower fees, better investment options, easier management, or increased flexibility in retirement.

Can I Transfer My Pension? (By Type)

1. Defined Contribution (DC) Pensions

Yes, you can transfer a DC pension to another DC scheme or pension provider at almost any time, even if you’ve already left the employer or are no longer contributing.

Common examples include:

• Transferring old workplace pensions into a personal pension

• Moving your personal pension to a new provider with lower fees or more investment options

Transfers are generally straightforward and quick - often completed within 2 to 6 weeks.

2. Defined Benefit (DB) Pensions

Yes, but with restrictions.

A DB pension, also called a final salary or career average scheme, offers guaranteed income in retirement.

Transferring it means giving up that certainty in exchange for a Cash Equivalent Transfer Value (CETV), which is paid into a DC scheme.

Important: If your DB pension is worth more than £30,000, you must receive FCA-regulated financial advice before transferring.

This rule exists because transferring a DB pension is irreversible and could result in poorer long-term outcomes if not managed carefully.

You also can’t transfer if you’ve already started taking income from the DB scheme.

3. State Pension

No, you cannot transfer your State Pension.

The UK State Pension is a government-provided retirement income and cannot be moved to another provider. It’s non-transferable.

Reasons You Might Want to Transfer Your Pension

Here are the most common reasons people in the UK consider transferring their pensions:

1. Consolidation

If you’ve had several jobs over your lifetime, you may have multiple small pensions scattered across different providers. Consolidating them into one pot helps:

• Simplify management

• Reduce paperwork

• Make your retirement picture clearer

2. Lower Fees

Older pensions may charge high annual management or admin fees. Newer providers often offer lower fees and better digital tools, saving you money over the long term.

3. Better Investment Options

Some pensions offer very limited fund choices. Transferring could give you access to:

• Ethical or ESG investments

• Target-date funds

• Customisable portfolios

4. Flexible Access in Retirement

Many modern pensions offer flexi-access drawdown, letting you take income as and when needed. This flexibility is a big reason people transfer out of DB schemes or old-style pensions.

5. Legacy Planning

Transferred pensions can often be passed to beneficiaries free of inheritance tax, depending on your age at death. Some older schemes have limited or no death benefits.

When You Should Not Transfer Your Pension

Despite the appeal of transferring, there are times when it’s not in your best interest.

1. You Have a Strong Defined Benefit Pension

If your DB pension offers a generous, inflation-linked, and guaranteed income for life, it’s often best to keep it. You’re giving up a secure retirement income in exchange for investment risk.

2. You’re Close to Retirement

Unless you have a specific reason (like consolidating), transferring late in your career can expose your pension to short-term market risk just before you need to start drawing income.

3. Your Pension Includes Guarantees or Bonuses

Some pensions come with guaranteed annuity rates or valuable bonuses. These could be lost in a transfer.

4. You Don’t Understand the Investment Risks

Once your pension is transferred to a DC scheme, you bear the investment risk. If you don’t feel comfortable managing or choosing investments, the transfer may do more harm than good.

How the Pension Transfer Process Works

If you’re thinking about transferring your pension, here’s how the process typically unfolds:

Step 1: Get a Transfer Value

Ask your pension provider for a transfer value. For DC pensions, this will be the current value of your fund. For DB pensions, you’ll get a Cash Equivalent Transfer Value (CETV).

Step 2: Compare Pension Providers

Shop around or consult a financial adviser to find a provider that:

• Offers lower fees

• Supports consolidation

• Provides access to the investments you want

• Has good customer support

Step 3: Seek Regulated Financial Advice (If Required)

As mentioned, DB pensions worth more than £30,000 require FCA-regulated advice.

Even if not mandatory, advice is still highly recommended for larger or more complex pensions.

Step 4: Submit the Transfer Request

Your adviser or new provider will help you complete the necessary forms. The old provider may contact you to confirm the transfer or ask for additional information.

Step 5: Pension Is Transferred

The funds move from one provider to another. For DC pensions, this is usually quick. For DB pensions, it can take longer due to the additional checks.

Is There a Cost to Transfer a Pension?

Some pensions charge exit fees, though this is increasingly rare, especially if you’re over 55.

Other possible costs include:

• Platform or provider fees at the new pension scheme

• Adviser fees for providing transfer advice (especially for DB pensions)

• Loss of benefits (such as guaranteed annuity rates or bonuses)

Make sure to review the total cost and weigh it against the long-term benefits of transferring.

Can I Transfer My Pension If I’ve Started Drawing Income?

You may still be able to transfer, but it depends on the type of pension and how you’re taking income.

• Drawdown pensions: Often transferrable to another drawdown provider.

• Annuities: Generally non-transferable once purchased.

• DB pensions already in payment: Cannot be transferred.

How Long Does a Pension Transfer Take?

The timescale varies by provider and pension type:

• DC to DC: Usually 2 to 6 weeks

• DB to DC: 8 to 12 weeks (sometimes longer)

• Transfers involving advice: May take additional time due to documentation and compliance

Common Myths About Pension Transfers

“I’ll lose all my money if I transfer.”

Not true. If managed properly, your pension is safely moved to a new scheme - not cashed out or lost.

“Transferring my pension will trigger a tax bill.”

Transfers between UK-registered schemes are usually tax-free, provided they are direct transfers.

“I can’t transfer my pension once I’m over 55.”

You can transfer most pensions up to age 75, even after 55. But always check with your provider, as rules can vary.

What Can Go Wrong when Transferring Your Pension?

While most transfers are beneficial, common pitfalls include:

• Transferring out of a valuable DB scheme without understanding the consequences

• Falling for a pension scam - always work with FCA-regulated firms

• Losing protected tax-free cash or early retirement rights

• Facing unexpected exit fees or delays

These risks reinforce the importance of seeking professional, impartial advice.

How Belgravia Capital Wealth Management Can Help with Pension Transfers

We guide clients through every stage of the pension transfer journey. Our services include:

• Reviewing your current pensions and transfer values

• Explaining the tax, investment, and income implications

• Identifying opportunities to consolidate and optimise

• Offering regulated DB transfer advice

• Protecting your retirement assets with a long-term strategy

We specialise in supporting high-net-worth individuals who want clarity, control, and peace of mind in retirement.

So, can you transfer your pension?

In most cases, yes. But should you? That depends on your goals, the type of pension you hold, and the value and benefits attached to it.

Transferring your pension is a significant financial decision, not just a formality. It can offer real advantages but carries risks if done without proper analysis or guidance.

If you’re thinking of transferring your pension, do it for the right reasons, and do it with the right support.

Speak to a Pension Transfer Specialist Today

Want to know if a pension transfer is the right move for you? Our team at Belgravia Capital Wealth Management is here to help.

Email us at contact@belgraviacapital.co.uk

We’ll help you assess your options, avoid costly mistakes, and plan your retirement with confidence.