FAQs
Is it right for me?
If you are under age 75 and live in the UK this service may be suitable. It is important you check to see what you might be giving up if you combine with us, so you’re making the right decision for you.
Am I comfortable using this pension combining service without financial advice?
Although we hope you find this information useful, we don’t offer financial advice with this service, so you will be responsible for making your own financial decisions based on your individual circumstances. If you are at all unsure about transferring, we recommend you seek financial advice.
What should I know before I consolidate my pensions?
You can’t use this service if the pension you are transferring falls into the following categories.
1. An employer is currently paying into your pension.
We can’t accept pensions which still receive employer payments.
2. Your pension is in a final salary scheme.
Also known as a ‘defined benefit scheme’, these can be valuable and well worth keeping. They can be transferred but only with specialist advice, contact us on… if you would to discuss this further
3. It has a Guaranteed Annuity Rate, a Guaranteed Conversion Option, a Guaranteed Minimum Pension or Section 9(2B) Rights. If you’re not sure, ask your current provider.
4. It’s already in drawdown.
If you have an income you can vary or if you’ve received a tax free lump sum, but not taken any other income, you might be in drawdown. If you’re not sure, ask your current provider.
5. It’s part of a block transfer. If you’re not sure, ask your current provider.
6. It’s part of a pension sharing order. In other words, has the pension been divided up as part of a divorce settlement.
7. We can’t accept transfers from an overseas pension.
8. You can only transfer complete pension plans.
In this service, you can’t transfer part of a pension plan to us. It has to be the whole plan.
9. If your pension is written under trust, you'll need the trustees’ permission to transfer.
10. Once in a pension your money is not usually accessible until age 55 (57 from 2028), up to 25% usually tax free and the rest taxed as income.
11. Pensions are transferred as cash, unless otherwise arranged, so you will be out of the market while the transfer takes place. This may work in your favour if the market falls, but if it rises you will not benefit from any growth while you hold cash.
What are the pros and cons
When you combine pensions, you move the pensions you have to one single plan. You might be gaining more convenience and additional features from one single pension, but you might be giving valuable things up. So please look at the questions below to see whether this is the right choice.
Advantages
The big advantage of consolidating your pensions is that you will have everything in one place which makes your administration easier. This should give you more control over reviewing your investments, making any changes and understanding the level of pension you are on target to achieve.
Disadvantages
Although consolidating multiple pensions together makes life simpler, there is a risk that you could lose some of your pension benefits if you move them. Employer contributions - for example, you might lose employer contributions if you transfer funds from a workplace pension that you’re still an active member of.
Bonus eligibility - You may also have to forfeit any loyalty bonuses you might have been eligible for and there’s a risk you’ll no longer be eligible for a spouse’s pension if your previous scheme offered this as a benefit.
Exit penalties - Another potential downside is that when you transfer funds out of a pension, your provider may impose an exit penalty, so make sure you find out if there is one and how much it will cost you.
What could I be giving up?
Some pensions have valuable benefits and features you might not want to lose. So please check if they apply to you, and think carefully about them, if they do.
If you’re still unsure about whether to give these features up or not, you should seek financial advice. If you’re not sure whether these apply, ask your provider.
Do your pensions have any ‘protections’?
We strongly recommend you seek financial advice if the pensions you want to combine have any of these:
•A ‘protected tax free lump sum’. You will lose this if you combine this pension with us.
•A ‘protected pension age’.
Can you take your money out earlier than age 55?
You will lose this if you combine this pension with us.
Do your pensions have any fund guarantees or bonuses?
Your existing pensions may have guaranteed benefits, such as a guaranteed growth or bonus rate, a loyalty bonus or a fund bonus. You could lose some or all of these if you combine with us.
Do your pensions have life cover, critical illness cover or waiver of premium?
Your existing plan may have additional life insurance policies, which may be more expensive or impossible to replace elsewhere.
What do I need to consider?
1. You will be moving into something new
When you combine pensions with us, it will be into a personal pension plan
2. Charges
Look at the charges you pay for managing your existing plan and compare them with ours to see whether you are paying more, or less.
3. Are there any exit charges?
These are charges your existing provider may take from your pension before transferring it to us. If your existing pension is invested in With Profits they may take a charge or you may lose guarantees or bonuses when you transfer. There may be a reduction in value if you transfer from a With Profits pension. This is known as a market value reduction.
4. Investment funds
For existing workplace pensions, your transfer payment will be invested in the same way as the current investment options. You can switch funds, without charge, to other funds if they better suit your needs and your attitude to risk.
How do I track down ‘lost pensions’?
If you have lost track of a pension the Government’s free Pension Tracing Service may be able to help you. Visit www.gov.uk/find-lost-pension or call 0345 6002 537 for more details.
How do you combine your pensions?
You can usually do this yourself for your defined contribution pensions using our service. As it's a non-advised service you are responsible for making sure that this is the right thing for you to do. Transferring your pension might not be the right thing for you and there are a number of factors you need to consider. For more information...
What does the Pension Consolidator need from me?
We will need the following details from you to help us combine your pensions with us:
• Your National Insurance Number
• The existing pension provider’s name
• The policy number of each pension you want to combine with us
• Scheme name (if it’s a workplace pension)
• A recent transfer value for each pension
How long will it take?
It typically takes from two to four weeks from start to finish, from contacting your previous providers, to adding your transfer payment into your pension.