What should I think about when transferring my pension?

We're not able to tell you whether transferring your pension is the right choice for you, but we can tell you some of the things you should think about.


Consider whether transferring is the right choice for your circumstances

Taking a transfer from the Scheme means that you’ll convert a defined benefit (DB) pension into a cash value and transfer it into a defined contribution (DC) savings pot, where you’ll need to decide where to invest it and keep an eye on how much it’s worth.

It may not always be in your best financial interests to take this option and whether transferring to a defined contribution (DC) savings pot is right for you will depend on:

  • Your plans for retirement; 
  • Your individual circumstances; 
  • How much you have saved in the Scheme and elsewhere; and 
  • How much income you need in retirement and when you would like to receive it.
Think about getting independent financial advice

Although this may involve an initial cost to you, getting support to make the right choice for your circumstances will mean you’re more likely to be better off in the long run. 

Neither the Trustee nor the Pensions Administration Team can give you financial advice. You should discuss the implications of a transfer with a financial adviser before making a decision. 

You’re legally required to confirm you have taken independent financial advice before transferring a DB pension to a DC arrangement with a transfer value of £30,000 or more.

You can find an independent financial adviser in your local area by visiting The Money Advice Service.

Be vigilant about where you transfer your pension

It’s important to make sure that you transfer your pension to an arrangement that will act in your best interest.

Read the Pensions Scams page to find out how to protect yourself from being a victim of a scam.

Check out the options that may be available under more than one arrangement

The following options may be available at retirement age under DC arrangements:

  • The total value of your savings pot paid as an immediate cash sum; or
  • A regular pension for you known as an annuity, plus a tax-free cash sum up to 25% of the value of your pension rights; or
  • A series of lump sums payments; or
  • Taking your pot as drawdown with payments from your pot received in installments.

The options available will depend on the pension provider and the arrangement you choose. Once transferred, your pension will be invested into the funds made available by your new provider until you decide to take your savings pot.