7 Reasons to Transfer Your Pension Today

(Article take from Airivo Capital Ltd)

7 Reasons to Transfer Your Pension Today

There are numerous reasons why people want to transfer their pensions before they reach retirement age, improved performance, reduced charges, enhanced death benefits etc.
However, appealing as it may sound, it should be a carefully considered decision and , wherever possible, financial advice should be sought.

1. Improved Performance Some people opt to switch their pension because they are in an underperforming scheme delivering poor – or non-existent – returns.
If your scheme is performing poorly, you may well want to move your money elsewhere.
But once again, you need to tread carefully, and ask yourself whether you are prepared to invest your pension pot in more risky funds to get a better return.
If you are approaching retirement age, you need to think particularly carefully before making such a decision.

2. Lower Charges Some want to transfer their pension to reduce the excessive charges that erode their returns leaving them with less money when they retire.
Find out how to review your pensions

3. Access to a wider range of investments and funds Switching your pension may be a good option to access a wider range of investments. Self build SIPP's are a perfect vehicle for providing greater flexibility and control when selecting investments.

4. Moving to a new employer
When you leave one job to move to another one, you are treated as having left the workplace pension scheme, but do not lose the benefits you have accrued.
At this stage, you may decide that you want to transfer your pot to the scheme offered by your new workplace.
But if you are thinking about switching, it is important to do this for financial reasons – and not emotional – reasons. It’s crucial that you don’t transfer out of a first-rate scheme simply because you want to cut all links with an old employer. Make sure you research carefully before making the move.

5. Improved level of service
Many policy holders are dissatisfied that their current level of service does not warrant the excessive charges paid each year to their providers. A financial advisor will provide a more hands on approach and also provide you with more control over your retirement plans.

6. Enhanced death benefits If you feel the death benefits on offer with your current scheme do not match up those offered by more modern schemes, you may want to transfer your pension to a different scheme.
You might, for example, want to move your money into a scheme that allows one of your relatives to inherit your pension when you die, rather than simply spouses or dependents. The same might apply if you are not married to your long-term partner, but want them to inherit your pension once you’re gone.

7. Consolidating multiple pensions As people change jobs more frequently during their working life, they often accumulate a number of small pensions along the way.
It can be hard keeping tracking of schemes, and difficult to really know how much your total retirement is worth.
For this reason, many savers want to clean up their finances by consolidating their pensions into one pot.


If you are thinking about transferring your pension to another provider then consider whether the benefits outweigh the possible entry or exit charges. In any case it is strongly recommended to have your pension reviewed and seek financial advice.

To review your current arrangements click here