Transferring your pension
You can transfer your pension fund to another pension scheme – generally any time up to one year before the date when you are expected to start drawing retirement benefits. In some cases, it’s also possible to transfer to a new pension provider after you've started to draw retirement benefits.
Moving some or all your pension fund
You may want to move some or all of your pension fund (sometimes called a ‘pension pot’) if:
- you’re changing job
- your pension scheme is being closed or wound up
- you want to transfer to a better pension scheme
- you have pensions from more than one employer and want to bring them together
- you’re moving overseas
- you’re moving overseas and want to move your pension to a scheme in that country
Transferring to a UK pension scheme
You can transfer your UK pension pot to another registered UK pension scheme.
Transferring your pension pot anywhere else - or taking it as an unauthorised lump sum - will be an “unauthorised payment” and you'll have to pay tax on the transfer.
To find out more about the tax implications of making an unauthorised payment, go to:
Deferred annuity contract
You can also use your UK pension pot to buy a deferred annuity contract.
This is a policy or contract bought from an insurance company, using funds from an approved retirement benefits scheme, or from 6 April 2006 funds from a registered pension scheme.
It will provide an annuity (a payment of a fixed total amount) to the member at some time in the future. It is therefore always a deferred annuity contract when purchased.
You can find more information about deferred annuity contracts in the Pensions Tax Manual.
Before you make a transfer to a UK pension scheme
Contact your current pension provider and the provider you want to transfer to.
You’ll need to check if:
- your existing pension scheme allows you to transfer some or all of your pension pot
- the scheme that you wish to transfer into will accept the transfer
If you transfer your pension, you may:
- have to make payments to the new scheme
- have to pay a fee to make the transfer
- lose any right you had to take your pension at a certain age
- lose any fixed or enhanced protection you have when you transfer
- lose any right you had to take a tax free lump sum of more than 25 per cent of your pension pot
Your pension providers can tell you whether any of these will apply.
Transferring your pension savings overseas
Transferring your pension savings overseas can have tax implications depending on your circumstances and the type of scheme you transfer to.
Your pension scheme administrator or financial adviser can explain any tax charges or changes you may need to report to HM Revenue and Customs.
For more information, go to: Overseas pensions: pension transfers
Payments from an overseas pension
You may have to pay UK tax on some payments from your overseas scheme. This depends on when you were a UK resident.
Find out more about tax on foreign income
Getting help and advice
You can get free, impartial information about transferring your pension from:
You can also get impartial advice about workplace pensions from an independent financial adviser. You’ll usually have to pay for the advice.
Find out about getting information and help with pensions.