How to Transfer Your Pension
Are you looking to transfer your pension? Whether you’re moving abroad, locating forgotten pension pots, unhappy with your adviser, or just wanting to switch providers, we’ll guide you through what factors to consider when making your decision.
Should I transfer my pension?
Before you consider a pension transfer, it’s important first to assess whether your pension is eligible to transfer. Depending on your scheme there may be valuable guarantees you will lose upon transfer, there might be exit fees to transfer away or it might not be in your interest to transfer away due to the value of your pension scheme.
If you’re looking to transfer your private or workplace pension, be sure that the fees are in line with current market standards. For example, a personal fund could have unfavourable rates which will eat away at any savings over time.
There are a lot of pros and cons to consider when deciding whether you should transfer your pension. The best way is to consult a professional who can give advice tailored specifically to your needs!
Where do I start?
The first thing you should do if want to move your pension to a new scheme is to contact your provider and request a pension transfer value.
This is how much you can expect to receive in your new pension. You may find that it’s not exactly the amount shown on our statement, as there could be additional benefits or fees tacked onto this overall calculation of what they pay out over time.
You should also check whether your current provider allows transfers. If they do, you are free to explore and find your next pension provider.
You should check for any benefits that are locked into your current provider before committing to a pension transfer. Sometimes, your pension transfer value can be higher than the actual value of your pension. If a transfer is going to take place then certain benefits can go missing or total values could change depending on which provider you move to, so this should always factor into any decisions made about switching providers.
Some older-style pensions, called “with profits” plans can also include a terminal bonus. This essentially means an additional reward on top of your accumulated capital is payable to you in the event that it ends up being transferable by law upon retirement. In such instances, you could be in for a nice surprise when you choose to start cashing in your pension.
Should I seek advice?
Improving your retirement prospects doesn’t have to be hard work. You could save yourself time and trouble by using an expert provider who will know all about the different options available for transferring funds, as well as the benefits and risks associated with each option.
The best part of this process is you don’t have to do anything. Your new provider will contact any current providers and move your savings on your behalf, so it’s all taken care of. It really doesn’t get much easier than that.
At SJB Global, we offer a range of services that can benefit you. Whether you need help transferring your pension or finding an old workplace pension you may have lost track of, our team is here to guide you every step of the way. With years of experience in the industry, we know all about the different options available for transferring funds and are happy to share our expertise with you.
Contact us today to get started!
This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
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