Ready-Made Pension

No, you can transfer one or more older pensions, as long as the total initial value is over £10,000. This will open your Ready-Made Pension and once this is set up, you can add more pensions to it anytime in the future.

Please note that you can’t transfer every type of pension.

We can’t accept:

Pensions with guarantees

This is a pension with a Guaranteed Annuity Rate. It means you could get a higher income than you’d get at today’s rates when you retire.

Or

Guaranteed Minimum Pension or Section 9(2B) rights

These may provide you with a guaranteed income when you retire. You’re not likely to match this amount when transferring. Please check with your current provider, as they should have more details on this.

Or

Guaranteed Conversion Option:

This allows you to convert your pension into a fund, which gives you access to a wider, more flexible range of benefit options. At today’s rates, it’s unlikely that this fund will be worth as much as your original pension.

Pensions with defined benefits

Also known as final salary benefits, this is where you receive guaranteed pension income based on your salary, rather than how much you’ve paid in. Your current provider should have more details on this.

Workplace pension

A pension that you and an employer still pay into.

Other reasons you can’t transfer

Your pension may be with a provider outside of the UK. It could be subject to a pension sharing or earmarking order following a divorce or dissolution of a civil partnership. Or it has been, or will be, set up using disqualifying pension credits. This is when the pension sharing order is applied to a pension already in payment or income drawdown.

To see what you may get back from your pension, we’ll provide an example illustration when you apply. These figures are only examples and aren’t guaranteed – they’re not minimum or maximum amounts.

We’ll send you a personalised illustration when your Ready-Made Pension is set up.

Use our pension calculator as a guide to see what your retirement income could be. You can also see how making changes to your contributions could make a difference to your overall pension pot.

The Lifetime Allowance (LTA) limit for personal pensions was abolished on 6 April 2024. It was replaced by the Lump Sum Allowance (LSA), which is £268,275, and the Lump Sum Death Benefit Allowance (LSDBA), which is £1,073,100. The total number of tax-free lump sums, which can be paid from any pensions you have, is limited by these new allowances.

There’s no limit to how much you can save into a pension throughout your lifetime. But there is an annual maximum called the ‘annual allowance’.

You may still contribute the equivalent of 100% of your annual earnings each year. Or up to a maximum of £60,000 (whichever is lower). You can also carry forward up to three previous tax years’ worth of unused allowances.

Find more information about the Lump Sum Allowance at gov.uk.

One of the benefits of investing into a pension is tax relief. If the basic rate of tax is 20%, for every £80 you pay in, the government will top this up with an extra £20.

If you’ve told us you’re eligible, we’ll add basic rate tax relief automatically to any regular or one-off contributions you make into your Ready-Made Pension. If you’re a higher rate taxpayer, you can claim additional tax relief through your self-assessment tax return.

How much you can pay in without a tax charge will depend on your circumstances.

• You can normally pay up to £60,000 (the annual allowance) into your pensions each tax year without paying a tax charge (or up to 100% of your taxable yearly income if less).
• If you’re not working and don’t have any income, you can still pay in £3,600 each tax year (you pay in £2,880, with £720 tax relief).
• If you’re a high earner, a lower limit could apply known as Tapered Annual Allowance. See further information at www.gov.uk.
• If you’ve taken out a taxable cash sum or flexible income, the amount you can contribute without paying a tax charge is limited to £10,000 (the Money Purchase Annual Allowance).

Tax treatment depends on your individual circumstances. Your circumstances and tax rules may change in the future.

If you would like financial advice, you could speak to an Independent Financial Adviser. Unbiased and Vouchedfor will let you find a local adviser based on your requirements. There will be a charge for this service.

You get free help and guidance through Pension Wise. If you’re over 50, you’ll also benefit from a free 60-minute appointment.

Alternatively, Lloyds Wealth could also help. Personalised advice is available across a range of products and services. It all starts with a free, no obligation chat, then a financial plan that’s tailored to you. To be eligible, you’ll have at least £100,000 in sole or joint savings, investments or personal pensions, or sole income of at least £100,000. Fees and charges may apply.

You may forget about a pension you already have. This could impact how much you can save for retirement.

For further support, you can go to The Pension Tracing Service, which is operated by the Department for Work and Pensions.