Can I Transfer My Pension to Another Provider?

One of the most common questions we hear from clients planning their retirement is:

“Can I transfer my pension to another provider?”

The short answer is yes, most UK pensions can be transferred to another provider. But the better question is: Should you transfer - and if so, when and how?

In this comprehensive guide, we’ll explain when and how you can transfer your pension to another provider, the benefits and risks of doing so, and what to look out for to ensure a smooth, secure, and beneficial transition.

Can I Transfer My Pension to Another Provider?

Yes, if you have a defined contribution (DC) pension or a defined benefit (DB) pension (subject to certain conditions), you can transfer it to another provider.

The transfer process involves moving the value of your pension pot to a different pension scheme, without withdrawing the funds.

This can include:

• Moving from one personal pension provider to another

• Consolidating old workplace pensions into a single modern pension

• Transferring a DB pension into a DC scheme for greater flexibility (if appropriate)

Why Transfer Your Pension to Another Provider?

There are many legitimate reasons to transfer your pension, especially as more people want to take control of their retirement planning. Some of the most common include:

1. Lower Fees

Older pensions often carry higher annual management charges. Many modern providers offer significantly reduced fees, especially with digital platforms.

2. Better Investment Options

If your current scheme has a limited range of funds or outdated investment options, transferring to a provider with more diverse or tailored choices can improve your long-term outcomes.

3. Simplified Management

Many people hold multiple pension pots from different jobs. Transferring them into one provider allows for easier oversight and potentially better performance tracking.

4. Flexible Access at Retirement

Newer providers often support flexi-access drawdown, letting you take income as needed while keeping the rest of your pot invested. This level of flexibility isn’t always available in legacy pensions.

5. Improved Online Tools and Service

Modern pension platforms offer intuitive dashboards, performance tracking, mobile apps, and customer support, making your pension easier to manage.

What Types of Pensions Can Be Transferred?

1. Defined Contribution (DC) Pensions

Yes, these are fully transferable.

This includes:

• Personal pensions (e.g. stakeholder pensions, SIPPs)

• Old workplace pensions from previous jobs

You can transfer these at any time to another registered pension scheme.

2. Defined Benefit (DB) Pensions

Yes, but with conditions.

You can transfer a DB pension to a DC scheme if:

• You haven’t started taking income

• You’re under age 75

• You’ve received FCA-regulated advice if your CETV (Cash Equivalent Transfer Value) exceeds £30,000

DB transfers are more complex and should be approached with caution. You’re giving up a guaranteed income for life in exchange for a lump sum that you manage yourself.

3. Annuities

No, annuities cannot be transferred.

Once you’ve purchased an annuity with your pension funds, the decision is final.

4. State Pension

No, you cannot transfer the UK State Pension.

It is a government benefit, not an investment-based scheme.

How to Transfer Your Pension to Another Provider

Step 1: Get a Transfer Value

Request a transfer value statement from your existing provider. This will tell you:

• The current value of your pension pot

• Any charges or penalties for transferring

• The deadline for accepting the offer (usually 3 months for DB pensions)

Step 2: Research New Providers

Compare providers based on:

• Fees and charges

• Investment range and performance

• Customer service and online access

• Flexibility for income drawdown

• Financial strength and reputation

If you’re not sure where to start, consider speaking with an independent financial adviser.

Step 3: Seek Advice (If Necessary)

If you’re transferring a DB pension over £30,000, you’re legally required to take advice from a qualified FCA regulated adviser. Even for DC pensions, advice is often helpful to avoid mistakes.

Step 4: Complete Transfer Forms

Your new provider will ask you to fill out forms authorising the transfer. This may include:

• Personal and scheme details

• Transfer value confirmation

• Investment instructions for the new scheme

Step 5: Wait for Completion

Once authorised, your new provider will coordinate with the old provider to transfer the funds. This typically takes:

• 2 to 6 weeks for DC pensions

• 8 to 12 weeks for DB pensions

Once completed, your pension will appear in your new provider’s dashboard or online portal.

What Happens to Your Money During the Transfer?

In most cases, your old provider sells your investments, and the proceeds are sent as cash to your new provider. Once received, they are reinvested according to your new instructions.

In some cases, you can do an in-specie transfer, where your assets move directly without being sold, this is more common with SIPPs and investment platforms.

Is There a Cost to Transfer?

Potential costs include:

• Exit fees from your old provider (less common in modern schemes)

• Initial charges from the new provider

• Advice fees (for regulated transfer advice)

• Possible loss of valuable benefits, such as:

  
  

  • Guaranteed annuity rates

  • Protected tax-free cash

  • Early retirement options

  
  

Always factor in the full cost-benefit analysis before transferring.

What Risks Are Involved in Pension Transfers?

While transferring can be beneficial, there are also risks to consider:

1. Loss of Guarantees

You may lose valuable built-in benefits such as:

• Guaranteed income

• Spouse/dependant pensions

• Inflation-linked increases

2. Investment Risk

Once you transfer to a DC scheme, your retirement income depends on market performance and how well you manage your portfolio.

3. Scams and Fraud

Unfortunately, pension scams are on the rise. Never transfer a pension based on:

• Unsolicited phone calls or emails

• Promises of high guaranteed returns

• Time-limited offers or pressure tactics

Use only FCA-authorised firms.

When Should You Consider Transferring your Pension?

A pension transfer to another provider may make sense if:

• You have multiple pensions and want to consolidate

• Your current provider charges high fees

• You want greater investment control

• You need flexible access to your retirement funds

• You want to ensure your pension passes efficiently to beneficiaries

When Should You Avoid Transferring your Pension?

You may want to keep your pension where it is if:

• You’re in a strong DB scheme

• Your pension includes valuable guarantees

• You’re unsure how to manage investments

• You’re approaching retirement and want certainty over income

Transfers should always support your long-term retirement goals, not just short-term convenience.

What Happens After a Pension Transfer?

Once your pension is transferred:

• Your old scheme is closed (or marked as transferred)

• Your funds are invested with your new provider

• You receive updates from the new scheme only

• You can monitor, manage, and adjust your investments as needed

From here, your retirement planning becomes more centralised and potentially more efficient.

Belgravia Capital’s Role in Pension Transfers

At Belgravia Capital Wealth Management, we specialise in helping clients:

• Understand whether transferring is right for them

• Identify and compare top-tier pension providers

• Review transfer values, benefits, and tax implications

• Execute the transfer process securely and smoothly

• Develop a drawdown and investment strategy tailored to their goals

We work exclusively with FCA-authorised platforms and follow a fully regulated, advice-led process.

So, can you transfer your pension to another provider?

Absolutely, but the real question is whether it makes sense for your personal retirement journey.

Transferring your pension can reduce costs, improve investment performance, and give you greater control. But it’s not always the right move, especially if your current scheme offers unique benefits or guarantees.

Evaluate your goals, review your current pension’s features, and seek expert advice to make the decision that best supports your future.

Speak to a Pension Transfer Specialist Today

Thinking of moving your pension to another provider? We’ll help you assess your options, avoid costly pitfalls, and make a smooth transition aligned with your long-term goals.

Email us at contact@belgraviacapital.co.uk

Belgravia Capital Wealth Management - expert advice, transparent guidance, and tailored pension strategies for the future you deserve.