Transferring your pension

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:

Why you might want to transfer your pension

You might want to make a transfer to or from your pension scheme if:

  • your pension scheme is being closed or wound up
  • you want to transfer to a better pension scheme
  • you might have pensions from more than one employer and want to bring them together in one pension scheme
  • you're going to live overseas and want to move your pension to a scheme in that country

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Things to think about before you transfer your pension

Before you make a transfer of your pension pot you need to consider if:

  • your existing pension scheme will allow you to transfer some or all of your pension pot
  • the scheme that you wish to transfer into will accept the transfer
  • you'll have to make payments to the new scheme and how much
  • there will be a charge to make the transfer
  • you'll lose any right you had to a protected pension age when you transfer your pension pot – find out more using the link below
  • you'll lose any fixed or enhanced protection you have when you transfer - more on this in the link below
  • you'll lose any right you had to take a tax free lump sum of more than 25 per cent of your pension pot under the pension scheme before 6 April 2006

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.

Taking your pension before you’re 55 using a protected pension age

More about enhanced and fixed protection

Contact the Pensions Advisory Service (Opens new window)

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Tax charges on pension transfers

There are conditions that must be met or there will be a tax charge. The conditions include:

  • where you transfer your pension pot to
  • whether or not the pension pot has already started paying your pension

The sections below give further guidance on the conditions.

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Where you can transfer your pension pot to

You can transfer your pension pot to:

  • another registered pension scheme
  • a non UK pension scheme that is a qualifying recognised overseas pension scheme (QROPS)
  • the Pension Protection Fund (PPF) or Financial Assistance Scheme (FAS)

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.

Transferring your pension pot to an overseas scheme

The Pension Protection Fund and the Financial Assistance Scheme (Opens new window)

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Transferring pensions in payment

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.

More useful links

Unauthorised payments and how they are taxed

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