You could save money by transferring your pension to another company if they charge you less for managing your pension fund.

Before you transfer your pension, think about:

  • How much it costs to transfer your pension fund

  • If the management charges are less with another company

  • Will you save money by transferring over the long term

Your pension company could also charge you for transferring away from them, so ask before you switch to avoid any surprise charges.

How much does it cost?

There are two ways your new or existing pension company could charge you for transferring:

  • A percentage fee of the amount you transfer across, for example 2%

  • A set fee, regardless of how big your pension fund is, for example 500

The cheapest transfer fee will depend on the amount you transfer, for example:

If your pension fund is worth 20,000:

  • A 2% percentage charge would cost you 400

  • A set fee would cost you 500

If your pension fund is worth 30,000:

  • A 2% percentage charge would cost you 600

  • A set fee would still cost you 500

Make sure you compare the prices of transferring a pension by working out how much a percentage charge will cost you compared to a set fee.

How to find the right pension transfer

Before you transfer your private pension ask yourself:

  1. 1.

    Why are you transferring? You may get access to a wider range of funds or save on the cost of management fees.

  2. 2.

    How big is the pension you want to transfer? Some pension companies will only accept your fund if it is a set amount or higher, for example 2,000 or more.

  3. 3.

    How much do you want to invest in your pension? This could be as low as 1 a month, but most ask for a higher amount, for example 200 a month or 2,400 a year.

Once you are ready to transfer, use our comparison to find the best pension transfer deal. Alternatively, you can speak to a pension broker who will talk through your options.

Pension transfer FAQs

Q

Why does it cost to transfer my pension?

A

It covers the cost of buying and selling your pension's investments. The same can apply when you transfer your pension fund to a new company.

Q

Can I transfer multiple pensions into one?

A

Usually yes, but it may not be cost effective to do it if the pension plans you are transferring are small. Get professional advice before you do this.

Q

Can I change my mind after transferring my pension?

A

You usually have 30 days to change your mind, but if the value of your pension investments drop in that time the money returned could be less.

Q

Should I get advice before transferring my pension?

A

Yes, but only if you do not fully understand the risks and charges involved when using your pension fund to buy and sell investments.