Pension transfers

Nowadays, a new job usually means a new pension. Before long, many people have more pensions than they can manage or even remember. And admin isn’t the only problem.

When your pots are here, there and everywhere, it’s harder to tell whether you’re saving enough for retirement.

Combining your pensions could be the answer – it can be easier to see how your pension is performing, as well as know what you're paying in charges. Our free pension finding service can help you track down and combine your existing pots into an AJ Bell pension account. Or, you can easily request a pension transfer to your AJ Bell pension yourself.

A Self-invested personal pension (SIPP) puts you in control if you’re comfortable making your own investment decisions. A SIPP also gives you flexibility as to how and when you can withdraw your money in retirement.

If you’d prefer to leave the investment management to an expert, our Ready-made pension is our simple, low-cost option with an all-in annual fee.

If you’re not sure whether a transfer is in your best interests, contact a financial adviser.

Why transfer a pension?

• Control – transferring to an AJ Bell pension lets you keep an eye on your retirement savings 24/7, both online and via our mobile app
• Low cost – it’s free to open an account and transfer in existing pensions
• Choice – a Ready-made pension lets you choose from a streamlined list and leave the management to our experts. Or, you can choose a SIPP to access a much greater range of investments than a traditional pension scheme, including our time-saving investment ideas
• Convenience – combining pensions into one means less paperwork and fewer logins to remember
• Extra retirement options – when the time comes to access your pension, a SIPP gives you greater flexibility on how to do it, such as drawdown

Should I transfer my pension?

You can transfer most types of UK pensions – including occupational pensions, and even those you've already started taking an income from.

But before you decide to transfer your pension, it’s important to make sure you won't lose any valuable benefits by doing so.

Here are the key questions to ask your current provider:

• Will there be an exit penalty or a market-value adjustment (MVA) for transferring?
• Could you lose valuable guarantees like a guaranteed annuity rate, early retirement age or enhanced tax-free cash?
• Can your investments be transferred as they are, or must they be sold first?

If you’re unsure about transferring your pension or whether it’s right for you, please speak to a qualified financial adviser.

For those aged 50 or over, free and impartial guidance is available through the government’s Pension Wise service.

Can I transfer my work pension?

Yes, you can transfer most UK pensions, including past workplace pensions.

Just keep in mind:

• Transferring old pensions can be a good idea for simplicity
• Opting out of your current employer’s scheme should generally be avoided – you'd lose valuable employer contributions

Also, consider any cost differences between your workplace pension and the scheme you’re transferring into. A pension like a SIPP offers greater flexibility, but might come with higher costs depending on how you invest.

If you're sure you want to proceed, it's usually possible to transfer the value you've built up so far into a new scheme. However, future employer contributions will likely remain with your workplace pension provider.

Can I transfer a defined benefit (final salary) pension?

Defined benefit pensions include safeguarded benefits, such as a guaranteed income or death benefits for dependents.

To transfer a defined benefit pension – or any scheme with safeguarded benefits worth over £30,000 –  you must receive advice from a qualified financial adviser. You'll also need to complete a financial advice declaration form with your adviser.

How easy is it to transfer a pension?

 If you've decided to transfer a pension to AJ Bell and have all the necessary details, here's how to get started:

Already an AJ Bell customer?

You have two options:

•   Don’t know your pension details? Use our pension finder service by logging in.
•   Know your pension details? Start your transfer in the ‘Transfers’ section of your account.

How long does a pension transfer take?

It depends on whether you transfer:

• Cash only (typically quicker but means selling investments first)
• Investments you hold (slower but avoids being out of the market)

Keep in mind that transfers to our Ready-made pension must be cash only, as the money transferred will be invested into the AJ Bell fund you chose when you opened the account.

Here’s what to expect:

Can I transfer my pension from AJ Bell to another provider?

Yes – you can transfer all or part of your pension to another UK-registered scheme or qualifying recognised overseas pension scheme (QROPS). Read more about transferring to another provider, or call us on 0345 54 32 600 to learn more.

Can I transfer just part of my pension?

Yes, in most cases.

• If you've already accessed your pension, you must transfer the crystallised portion in full
• You can transfer any part of the uncrystallised pension