A transfer is when you move your pension pot from one scheme to another. You may be able to transfer all of your pension pot or just part of it, but not all pension schemes allow a transfer of only part of your pension pot. Also, you'll need to check that the scheme you wish to transfer to will accept the transfer.
On this page:
You might want to make a transfer to or from your pension scheme if:
Before you make a transfer of your pension pot you need to consider if:
You might want to consider getting advice before making any decisions about transferring your pension. You can speak to a financial adviser or The Pensions Advisory Service who give independent advice on general pension rules and regulations.
There are conditions that must be met or there will be a tax charge. The conditions include:
The sections below give further guidance on the conditions.
You can transfer your pension pot to:
Using your pension pot to buy a deferred annuity contract (also known as a section 32 buy out policy) is also an acceptable transfer.
If you transfer your pension pot to anywhere else the transfer payment will be an unauthorised payment. Both you and your scheme administrator will have to pay tax on the transfer.
You can transfer your pension pot if it's already paying a pension. For example, this might happen because your employer is reorganising their company pension schemes.
The transfer must be on a ‘like for like’ basis - so the type of pension you get after the transfer must be the same type of pension you were getting before the transfer.
In these circumstances you must transfer all of the pension pot that is being used to pay your pension.
If your transfer doesn’t meet these conditions the transfer payment will be an unauthorised payment. Both you and your scheme administrator will have to pay tax on the transfer.