Moving your pension could reduce your retirement income
Switching may not always be in your best interest, especially when it comes to protecting your long-term savings and financial security.
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Thinking of moving from Smart Pension?
Before making any changes, take a moment to understand the potential long-term impact. Growing your pension over time is key to the retirement you want. Our default fund has delivered strong performance compared with other major pension providers.
Here’s an example to help you understand the impact:
Michael is a 35-year-old with a £10,000 pension pot. He’s considering switching from Smart Pension to an alternative retail provider offering a similar investment strategy*.
The new provider’s annual fees are 0.27% higher than Smart Pension and they have a lower performance of 6.5%‘1’ p.a.1 in the last 5 years.
By applying these figures and assuming constant performance, we can project the value of Michael's pension pot at his retirement age of 65.
The result shows that transferring to the new provider could mean that Michael is £165,254 worse off than if he stayed with Smart Pension.*
*These illustrated values are not a guarantee of future returns and should not be relied upon as an indication of an individual member's savings growth. Their sole purpose is to highlight the effect of compounding based on different performance returns on pension pots over an extended period. The value of your investment can go down as well as up, and you may get back less than you invested. Returns are not guaranteed.
Strong investment performance
Using data from popular providers, we illustrate how differences in returns and charges can affect your savings. Check what the impact could be for a saver like you.
Assumptions based on: Smart Fees 0.40%, Illustrative Alternative provider Fees 0.67%. Average age of 35-years old, retirement age of 65-years old. Strategy Type: Medium-Risk portfolio, contributions towards pension 8%. Salary of £38,500 per annum and pot size of £10,000.
1The illustrative example is based on popular SIPP providers offering medium-risk ready-made portfolios (typically 60-80% equities). Please note that SIPP ready-made strategies can fundamentally differ from that of Smart Pension, and therefore may not be directly comparable. 2The Fees represent the typical fees (platform and management fees) individuals would pay when joining a SIPP provider. These figures are used only for illustrative purposes, they may not represent the current SIPP market fees and performance.
Things to consider before making a decision
A new provider's investment performance may not match your Smart Pension returns, which means less savings for you to enjoy in retirement. See how our funds perform.
Moving to another provider might mean higher charges which can add up over time and leave you with less money in your pension. Charges for workplace schemes such as Smart Pension are generally capped at 0.75% (per year) which offers you future protection against charge increases. With Smart Pension, you get a low annual management charge which means more money in your pension. You can check your charges in your online account.
When it comes to retiring, we make the process as smooth as possible. We offer flexible retirement options, including our bespoke retirement solution Smart Retire, allowing you to plan your desired retirement without switching or managing multiple accounts. Other providers offer limited options on how you can access your money at retirement, restricting you to only a few choices. Find out more about our retirement approach.
Smart Pension provides extra protection, like lifestyling, which reduces your investment risk near retirement. Safeguarding your savings from short-term market changes. Our robust governance and investment strategy protects our members best interests. For example, the trustees of Smart Pension are responsible for overseeing the scheme and selecting professionally managed funds by leading asset managers.
With a Self-Invested Personal Pensions (SIPP) you would need to manage this and make all investment decisions yourself, unless you pay for a financial adviser.
Why stay with Smart Pension?
Your financial future matters. By staying with Smart Pension, you can continue building towards a more secure retirement.
We’re trusted by over 2 million members across the UK and are committed to making pension saving straightforward and accessible for everyone.
We're setting the standard for workplace pensions, with a #1 ranking on Trustpilot
Confidently take your savings
- Plan your retirement using our pension tools
- Fully flexible retirement income and tax free options
- Mix and match retirement options with Smart Retire
- Access to support and guidance when planning retirement
- Make payments to UK or foreign bank accounts at retirement
We’re here for you
UK Retirement Support Team
Our UK Retirement Support Team is here to make retirement planning easier. If you have a question about your options, just give one of our specialists a call on 0330 174 0643.
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If you fall victim to a pension scam, your lifetime savings can be lost in minutes. Think carefully before making a decision.
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Still unsure about your options?
We recommend that you speak to a regulated financial adviser. You can find one in your local area by visiting smrt.pe/moneyhelper-adviser.
Please note that financial advisers will usually charge a fee for their services. You should check their charges and expertise beforehand.
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FAQs
Set up fees can range from £0 to over £500, depending on the provider. Some providers charge you to take your money out of your pension, either directly or indirectly. There can also be different fund charges if you are making withdrawals.
Transferring a defined benefit (DB) or final salary pension may not prove beneficial, and independent financial advice is required for transfers exceeding £30,000. Check that the transfer won't result in losing valuable benefits such as: Guaranteed Annuity Rates (GARs), Enhanced tax-free cash entitlement (if over 25%) or a protected pension age. It’s important to compare all the benefits & features of different scheme providers before deciding to transfer out.
All pension providers charge a fee to look after your savings, and how much you pay in charges really matters. When the government Pension Dashboard launches later this year, you will be able to view all your pensions in one place. Some older types of pensions often have higher charges and are unlikely to benefit from the current charge caps that govern workplace pensions.
You can check your charges in your online account.
At Smart Pension we make our investments work hard for you, with strong performance over the long term. Your retirement income is affected by investment performance. Remember that past performance is not a reliable indicator of future results. Consider your choices carefully, as higher returns typically come with higher risks.
Find out more information on Smart Fund performance.
You can usually access your pension savings from age 55 (57 from 2028). Some pensions have a protected minimum pension age - if you have transferred savings into your Smart Pension with a protected pension age this will remain protected. Transferring to a new scheme may mean you lose this protection. This could result in you having to wait until age 57 to access your pension savings after 5 April 2028. Don’t forget, the earlier you access your pension, the longer your savings need to last.
We cannot initiate transfers from pension pots if you have already taken money from them, either through an annuity or drawdown.
Important: Attempting to transfer a previously accessed pension will result in a tax charge from HM Revenue and Customs (HMRC).
If you plan to take either your tax free cash entitlement or start withdrawing a regular or ad hoc income in the next 5 years, the age at which you can do this is changing from age 55 to age 57 in 2028. Some pension providers offer a protected pension age, which means you can still access your pension from age 55. This entitlement may be lost if you transfer out as not all pension providers will honour the protected age.
However, if you are considering transferring into Smart Pension, we accept transfers from other providers that enable you to retain your right to access your money from age 55 (57 from 2028).
Yes. The minimum amount that you can partially transfer out is £5,000, provided that at least £10,000 remains in your Smart Pension account after the transfer.
To enable us to discuss a pension scheme, the third party will need to provide a valid Letter of Authority signed by you. A Letter of Authority (LoA) is a legal document that gives Smart Pension permission to release information and talk about a pension scheme to a third party, such as an adviser.
The LOA should explain what the third party is authorised to do and contain your full name, policy number, address and date of birth. You can find these details in your online account.
You should consider seeking advice from a regulated financial adviser. You can find one in your local area by visiting smrt.pe/moneyhelper-adviser.
