Pensions can be a minefield to try and navigate, as regulations and legislation change and goal posts are continuously being moved. To try and help you feel a little bit more confident about the world of pension transfer we’ve laid out some helpful hints and tips.

Why Would you Want to Transfer?

Particularly now as the automatic enrolment at the workplace is beginning, many people will have pension pots growing with their employers. However, very few people now-a-days will stay in the same job for life. So you could want to transfer your money because you are no longer an employee of the same company. You may also want to transfer pension money if you have several pension schemes that you want to consolidate into one, or you may feel that you aren’t getting a very good deal and want to find a pension with better benefits.

Freeze or Transfer?

If you are moving jobs, then instead of moving your money, you could freeze it. Freezing your pension means that you stop paying in to it. Your money will still grow with the fund that is already in place, and you will get the money when you reach the designated age (depending on how long you were contributing to the fund- some schemes require that you contribute for a certain amount of time, otherwise you will lose the money) but you cannot add any more to it than you already have. You may also be able to continue contributing to your pension from your pervious workplace.

Company or Private?

Corporate schemes generally have quite good benefits, and they are a good option for those who plan to be in the same job or working for the same company for a long time. However if you are more unsure of your future, then a private pension may be better for you. They offer the flexibility of paying into a scheme no matter where you work, or if you decide to become self-employed or stop working.

The Costs

There may be a fee attached to transferring your pension, from the existing pension provider, the advice provider or the new pension company. If your pension pot is quite large then these costs will not significantly affect your pension pot and will be worth the cost.

Get Advice

The only way to really navigate your way through pensions is to start early, and get good advice. Unless you have the time and the resources to really understand pensions, you cannot know everything you need to make an informed decision. There are people out there that are dedicated to knowledge in the pension sector, and therefore can give you the best advice for your pension transfer. The advice providers should be regulated by the Financial Services Authority, and any literature they might send you should state that the business is authorised. To get the best knowledge of the market and unbiased advice, look for an adviser that is independent so they can give the best advice for you.