Why transfer your pension?
With Smart Pension, you can keep your pension in one place and manage it through your online account or app. Here are some benefits of transferring your pensions.
Keep everything in one place
Having one home for your pension can make it easier to keep track of your retirement savings, reduce paperwork and manage your pension with a single provider.
2. Reduce charges
Some older pensions may have higher charges than newer schemes. It's worth checking whether consolidating your pensions could help reduce the amount you're paying in fees. Smart Pension does not charge a fee for transferring pensions.
3. Access investment options that suit your goals
Smart Pension offers a range of investment options to suit different retirement goals, beliefs and attitudes to risk, including ethical and Sharia compliant options.
If you're invested in an older pension with limited investment choices, transferring may give you access to options that better meet your needs. Remember that past performance is not a guide to future returns.
4. Manage your pension with confidence
With Smart Pension, you can view your pension savings, track their value and make changes to your account whenever you need to. You'll also have access to tools and information to help you stay engaged with your pension savings.
Before transferring, it's important to check whether your existing pension includes valuable benefits or guarantees that could be lost if you move your savings.
How to transfer your pension
To start a transfer, sign in to your account and click ‘Combine pension’. It’s quick and easy to do and we'll guide you through the process and let you know if we need any additional information.
Before you transfer
A pension transfer may not be right for everyone. Some pensions include valuable benefits that could be lost if you transfer. Before transferring, make sure you understand any benefits, guarantees, or features you may lose. Different pension providers offer different benefits, and these may not be available after a transfer.
You should consider getting guidance or regulated financial advice before transferring, particularly if your pension includes:
Protected tax-free cash
A protected pension age
With-profits investments
Guaranteed annuity rates
Guaranteed pension benefits
A defined benefit final salary or career average pension
If you're transferring safeguarded benefits worth more than £30,000, you'll normally need to obtain regulated financial advice before the transfer can proceed.
For free and impartial guidance, visit the MoneyHelper website.
When transferring may not be suitable
Just as there are reasons to transfer other pension savings into Smart Pension, there are also reasons not to. Before you make a decision, you may want to think carefully about transferring if your pension includes:
Defined benefit pensions
Defined benefit pensions (sometimes called final salary pensions) provide a guaranteed income in retirement. These benefits are usually lost if you transfer.
Guaranteed benefits
Some pensions include guarantees such as:
Guaranteed annuity rates (GARs)
Guaranteed Minimum Pension (GMP)
Guaranteed investment returns
These guarantees will usually be lost on transfer.
Protected tax-free cash or pension age
Some older pension arrangements offer higher tax-free cash entitlements or an earlier pension age. These protections may be lost if you transfer.
If you think you might have a protected tax-free cash entitlement with us, you should get in touch by completing our contact form at smrt.pe/member-contact.
If I do have a protected tax-free cash entitlement, what are my options? What do I need to do? In line with HMRC rules, protected lump sum rights must be taken at the same time. If we confirm you are entitled to protected tax-free cash, the following options are available:
purchase a lifetime annuity through the open market option
transfer the balance of your pension savings to another provider as a ‘drawdown to drawdown’ transfer
get your pension savings as a taxable lump sum
Loyalty bonuses or additional benefits
Older pensions may include loyalty bonuses, life insurance or other benefits that could be lost when you move your pension.
Transfer penalties
Some providers charge exit fees or transfer penalties. Check with your existing provider before you transfer.
Other things to consider
Investment risk during a transfer
Your pension may be out of the market for a short period while the transfer is completed. This means investment values could rise or fall during the process.
Future changes
The value of your pension can go down as well as up. Future investment performance, charges, tax rules and retirement options may change over time.
Frequently asked questions
Where will my transferred pension be invested?
Your transferred pension will be invested according to your current investment selection. You can change your investment options at any time through your online account or the Smart Pension app.
Can I change my mind?
Once a transfer has completed, it's unlikely your previous provider will reinstate your original pension arrangement. Make sure you're comfortable with your decision before proceeding.
Please note that this information is for guidance purposes only and is not financial advice. If you need financial advice, you can locate a regulated financial adviser on the MoneyHelper website. Where we provide links to third-party websites, we are not responsible for their content, so it's important for you to carry out your own independent research. Find an adviser.