Some of your existing pensions’ benefits and features might be valuable or you think you’d like to keep them. If you transfer to us, you’ll give these up. So, it’s worth checking before you apply.
These can include:
Protected tax-free Lump Sum – You can normally take 25% of your pension as a tax-free lump sum at the point where you start to withdraw from your pension. Some pensions allow you to take more than this which could be of benefit to you.
Protected Pension Age - Currently you can access your pensions from age 55. The government is likely to increase this age over time. Your pension may have a Protected Pension Age to be able to access your money earlier and you will lose this if you transfer.
Fund guarantees or bonuses - These can include a guaranteed growth or bonus rate, a loyalty bonus or a fund bonus.
Protection - This can include life cover, critical illness cover or waiver of premium.
Be aware that some pensions will charge you an exit charge if you choose to transfer. Make sure you know if there is one and how much before you choose to proceed.
You can find out if your pension has any of these by looking at your policy documents, or by speaking to your existing provider. If you don’t know what to ask here’s a handy checklist.
Download the letter (word doc)
If you are a member of a workplace pension scheme(s), you should consider whether it is possible to transfer to that scheme. These schemes may benefit from lower charges relative to individual pension plans, however they may not be as flexible when it comes to investment choices or taking your benefits so it’s worth checking all these things.