Can I transfer my pension without financial advice?
If you have a defined contribution (DC) pension, you can usually transfer it without having to take financial advice. There are exceptions though. For example:
- If your pension has guarantees, like a guaranteed annuity rate, you’ll have to consult a specially qualified financial adviser first
- If you’re looking to transfer a defined benefit (DB or final salary) pension with a cash-equivalent transfer value (CETV) of over £30,000, it’s also a requirement
How could a financial adviser help me?
Even for defined contribution pension transfers where there are no special benefits, it may be worth consulting a financial adviser. That’s especially true if you have a larger pension pot (£100,000 or more), as the up-front cost of advice may not make sense for smaller pots but can have a bigger impact on larger pension savings. On a larger pension, a small saving on fees or slightly better investment returns may see the cost of the advice repaid quickly. That’s because the benefits of thinking through the impact of any differences in pension charges and investment options will probably offset the cost of advice.
Your adviser will check through the terms and conditions of any old pensions you’re thinking of transferring. They’ll identify any special benefits or charges, including any exit fees. They’ll also check both how your pension is invested and whether other investment options may be more suitable for you. So you won’t be surprised by any unexpected costs. And you won’t risk making your transfer decision without all the right information to hand.
It can be particularly valuable to get advice if you’re consolidating your pots to help you access money from your pension or because you’re retiring. An adviser will help you think through the tax implications of your decisions. They can also help you make sure that you’ll have enough income to cover the whole of your retirement.
The financial benefits of making well-informed pension decisions can be substantial. And the peace of mind that comes from knowing you’ve done the right thing and that your finances are on track for retirement can be priceless.
What if I want to go ahead without financial advice?
This is fine, as long as you do some basic checks to make sure it is in your best interests. We’ve summarised the main things you need to go over in our explainer article: Should I consolidate my pensions?.
Can I access my pension without a financial advisor?
If you’ve reached retirement age and are looking to start taking money out of or receiving payments from your pension, you don’t have to talk to a financial adviser. However, deciding the right way to draw an income from your pension, and whether to take a lump sum, can be complex and financial advice can be very worthwhile.
What should I do next?
Whether you’re looking to save into your pensions more efficiently or are ready to turn them into retirement income, it’s always worth looking at:
- How many pension pots you have
- How much you’re paying in fees and charges across them all
- Whether it’s all working for you
A financial adviser can help you understand whether advice is required, what risks to watch for, and what your best options are - before you make any decisions.
- To speak to our advice team visit our financial advice page
- To find out more about pension transfer visit our consolidation page
- To find a financial adviser, visit the Unbiased website
*Although many financial advisers don’t have a defined minimum pension value they will provide advice on, the cost of financial advice is more likely to outweigh the benefits on smaller pension pots.
Related articles
How to track down your old pensions
How do I consolidate my pensions?
