Where can I get pension transfer advice?

You should always make sure that your adviser has the right qualifications and permissions. That’s because pension transfers, particularly from DB schemes, can be complicated and risky.

So make sure you always:

• Use the Financial Services Register to check that any financial adviser you’re talking to is FCA registered and has permission to advise on pension transfers.
• Watch out for pension scams, especially if you’re contacted out of the blue or through social media sites.

In general, you only have to get pension transfer advice before transferring a DB pension with a transfer value of £30,000 or more. You’ll usually have to show that:

• You’ve consulted a suitably qualified financial adviser.
• The adviser has provided a positive recommendation to transfer.

That’s because once the DB (and some DC) pension transfer process is complete it can’t be reversed. So it’s very important indeed to make sure that transferring your pension is the right choice for you.

It’s also important to note that, even if you don’t have to get advice, it can still be a very good idea to talk to an adviser. They’ll help you make the right pension choices for you. You can usually pay for it out of your pension pot, too.

What’s included in pension advice?

Your adviser will look at:

• your retirement finances, including how much you’ve saved and what your goals are
• any guarantees your pensions have and when they start paying out
• any special benefits your pensions have and how consolidation could affect them
• any penalties you might have to pay if you transfer any of your pensions
• any fees and charges you’re paying on any of your pension pots

They’ll give you detailed, specific advice and answer any questions you have about pension transfers. You’ll end up with a clear sense of how your transfer could work, as well as any risks and benefits associated with it. They’ll also make sure you’re fully aware of any fees to pay.

How much does pension transfer advice cost?

Advisers often charge between 1% and 2% of the size of your pension pot. Some advisers charge a fixed fee or hourly rate. The amount can also depend on how much the adviser actually does for you.

So if you have a pension pot of £137,800, the average UK pot size at retirement age, and your adviser charges 2% in fees you would pay around £2,700.

You might also want your adviser to manage your pension savings and any other financial products you own. They’ll probably charge you an ongoing fee for that.

And there’s one final, very important point to make. The cost of pension transfer advice can seem high, but it should always add more value than it costs. 

Our retirement advice service is a clear, fixed-fee of £1,495, with no on-going charges unless you ask for them, and in most cases you'll be able to pay this fee out of your pension pot. We only advise on DC pensions. 

What should I do next?

If you’re happy to consolidate your pensions without financial advice, visit our pension consolidation page or login to get started. You should only go ahead with the consolidation if you’re completely sure that it’s the best choice for you.

If you’re looking to consolidate DC pensions, our financial advisers can see if that’s the right choice for you. That comes as part of our fixed price pension advice offer, which also includes:

• If you’re still saving for your retirement, checks on how your pension’s invested and whether you’re saving enough into it
• If you’ve reached retirement age and want to start taking money out of your pension, help choosing the best way of doing that

Our advice is completely independent, meaning we’re not tied to any provider. We simply help you understand your options and recommend what’s best for your situation, and will make sure transferring is genuinely the right choice for you. If a transfer isn’t in your interests, we’ll tell you. Please note we only advise on DC pensions.

If you’re looking to consolidate DB pensions, you’ll need an adviser who specialises in them. If you don’t already have one, we recommend visiting Unbiased.