When considering a pension transfer, there may be a thousand questions running through your mind that you want to ask a pension advisor. As experts in pension transfers, we manage and transfer pensions daily for hundreds of clients. With our Pension Transfer Gold Standard award by the Personal Finance Society, we are ideally placed to answer any queries or concerns.
Below, is a list of frequently asked questions with answers we get from clients regularly. The answers below shouldn’t be used as personal financial advice, but as information only. If you are looking for independent and personal advice, always speak with an authorised and regulated financial adviser, like us at Pension Works.
Q. Can I transfer my Private Pensions to a SIPP?
A. Yes, a SIPP (Self Invested Personal Pension) is just another type of pension, so you are able to transfer your pension to a SIPP.
Q. Can I transfer a Guaranteed Minimum Pension (GMP) into a personal pension?
A. Yes, it can be done. A GMP is treated like a defined benefit Pension, so you may be able to transfer this into a pension. Please speak with your pension advisor for your options.
Q. What is a transfer value on a private pension?
A. The value of the pension plan if you are looking to transfer out. This can be seen on your pension statement.
Q. Can you transfer a pension into an ISA?
A. No, you can’t transfer your pension into an ISA. If you desire, and your pension allows, you could withdraw your tax-free lump sum cash and invest into an ISA.
Q. Can I transfer my pension to another person?
A. No, for your protection, pension transfers to other people are not allowed, although there can be particular circumstances where this is acceptable, i.e. divorce cases. There are alternative ways to move partial pension funds to dependents, but please speak to our financial advisers for assistance.
Q. Can I move my defined contribution pension myself?
A. Yes, it is possible to transfer a pension yourself, but in the case of the defined-benefit pension, there are restrictions. It is essential, though, to seek professional financial advice.
Q. Can I transfer my current workplace pension?
A. Yes, but we wouldn’t advise this as you could lose the pensions contributions made by your employer. Please seek professional pension advice before moving your defined contribution workplace pension.
Q. Should I consolidate my pension pots when I move jobs?
A. There is no strict rule concerning your old workplace pensions. It may be wise to review your old workplace pension to see if it meets your financial outlook in terms of risk and growth. If the pension doesn’t, there are different options you can look at, and a financial adviser can advise on the best option for you.
Q. Can I transfer my pension into cash?
A. If you’re over 55, you can fully encash your pension, but you may face significant tax bills on the withdrawal. Cash funds are alternatively available within most pension plans.
These are just a few questions we get asked regarding private pensions and transfers. Pension Works is authorised and regulated by the Financial Conduct Authority, based in Knutsford, Cheshire, UK.