A pension transfer is where you switch your pension plan to another provider, pension transfers are somtimes referred to as pension switches or pension switching. For example if you had a £60,000 fund with your current pension provider and you are not happy with the performance or charges and want to transfer it to another pension provider.
When you switch or transfer your pension the original pension plan ends.
Understanding whether you will benefit from a pension transfer can be complicated and you should always take advice from an independent financial adviser before arranging a pension transfer.
Why Transfer Your Pension?
Everyone’s situation is different, so you won’t necessarily benefit from a pension transfer.
There are situations where it does make financial sense to switch your pension to a new or different pension scheme – here are a few possible examples:
• Your existing company scheme is being wound up
• You have an old personal pension that has high charges and you would like to transfer it to one of the new breed of low-charge stakeholder personal pensions.
Whatever your situation, before you go ahead with a pension transfer you need to consult an independent financial adviser (IFA), the IFA will investigate the charging structure of your existing pension and then compare it to the charging structure of your intended new pension provider.
For independent financial advice call Retirement Solutions Limited on 0800 043 6701