GUIDE 1
Guide to pension transfers
Like to know more about why you might want to transfer your pensions to us? Our pension experts answer some of the questions we often get asked. Pension transfers are not right for everyone. You should check you're not losing valuable guarantees or features, and you should compare charges and funds.
Why would I transfer my pensions?
These days, it’s normal to end up with more than one pension. This might be because different employers have arranged these for you. You may have also set up your own individual personal pension.
Each of your pensions will be different. This could be in a range of ways:
- Benefits and features
- Charges
- Providers
That means you’re likely to have a lot of details to keep track of. One option which might make life simpler is to transfer your pensions, so you end up with fewer plans.
When you combine your pensions, it may be easier to:
- See if you’re saving enough for the future
- Understand how much you’re paying in charges
- Keep on top of your pension details.
And, when you have a question about your pension, it’s easier to know which provider to ask.
Why should I transfer to you?
We’ve been helping people to save for the future for over 200 years. We’re part of a large group which also includes well-known brands like Lloyds Bank, Halifax and Bank of Scotland.
Every day, people combine their pensions with us because they trust us to help them manage their finances more easily.
How much does it cost to transfer a pension?
We won’t charge you for transferring your pensions to us. It’s worth checking if your other providers will charge a fee when you leave their pension.
Can I transfer my pensions myself?
Decided that a transfer to us is right for you? You may be able to do this by using our online guided transfer process.
In some cases, you can’t transfer to us online. This can be for a few reasons, such as:
- You have a final salary pension (otherwise known as defined benefit)
- You’re taking an income, or have taken a tax-free lump sum from your pension
- You have a pension with an overseas provider.
It may also be because you have valuable benefits and features, such as a Guaranteed Annuity Rate, life cover or a protected pension age.
If these apply to your pension, you can call us to talk about your options. If needed, we’ll tell you if you need to speak to an independent financial adviser.
How will my pension be invested by you?
When you transfer other pensions to us, we’ll invest these in the same way as the pension you have with us. This may be in line with your existing pension with us. Or, it may be a default option.
Once the transfer process is finished, you’ll be able to change the way your pension is invested online.
If you’d like to know more about your investment options, you can visit your scheme infosite or view your pension details online.
How can I find out what a transfer means for my future pension income?
It’s worth looking to the future when you're thinking about combining your pensions.
One way you can do this is to ask all your providers for an estimate of the income you may get from your pensions. This is known as an illustration.
Some providers may be able to give you generic illustrations online. You can usually also ask for a personalised estimate. This’ll be more accurate, as it’ll be based on:
- How much is in your pension
- How long it's been invested
- How much you’re still paying in
- How much you're paying in charges
- Which funds your pension is invested in.
Make sure that you give the same retirement date when you ask for estimates from different providers. This'll help you compare more easily.
Call us to find out more about pension illustrations.
What details would I need to give when I transfer?
When you request a transfer, we’ll ask you for a few details so we can start the process. For each pension you’d like to transfer, you’ll need:
- The name of your provider
- Your member or policy/plan number
- Pension scheme name, if it was set up by an employer
- Recent transfer value.
You’ll also need to give us your pension plan number with us and your National Insurance number.
You’ll find these details in your annual benefit statement or schedule. If you don’t have these, you might need to speak to your provider.