Transferring Personal Pensions

Once you have a personal pension you don’t have to remain in the same fund until you retire – it is possible to transfer.

There are many different types of pension fund available, and a large number of different providers (banks, building societies, friendly societies, unit trust managers as well as insurance and life offices usually offer personal pensions) so it has become quite common for people to transfer their pension funds in order to find better investment performance or service.

The Social Security Act 1986 has made transferring a pension a fairly straight forward process. If you receive certain benefits from your currently pension policy, it is possible to transfer these benefits between pension schemes.

The value of the fund at the time of the transfer however is not necessarily the amount that will be transferred as there may be transfer penalties imposed by the existing scheme provider.

Charges vary and may depend upon your age as well as the length of time the pension has been held. The benefits of transferring your pension however may outweigh the cost of the transfer so it is always a good idea to seek financial advice if you are considering this option.