Quick answer: Transfer a pension only if your existing scheme has high fees, poor fund choice and no valuable guarantees. Don't transfer a defined benefit pension (final salary, NHS, LGPS, Teachers) in almost all cases — and you legally need a Pension Transfer Specialist for DB pots over £30,000. For old DC workplace pensions, consolidating into a low-cost SIPP often makes sense.
The 4-step decision
- What type is it? DB/final salary → usually keep. DC/personal/workplace → continue checks.
- Any guarantees? Guaranteed annuity rates (8–12%), with-profits guarantees, protected pension age or protected tax-free cash → keep.
- What are the fees? Over 0.75% all-in with no guarantees → transferring usually pays off within 2–3 years.
- Exit penalties? Pre-2001 policies can charge 1–10% — calculate the break-even.
When transferring wins
- Multiple small DC pots to consolidate
- Old workplace scheme with poor funds and high fees
- You want flexible drawdown the old scheme lacks
- Paper-based pension with no online access
When it loses
- Defined benefit guarantees
- Guaranteed annuity rates above 8%
- Big exit penalties near retirement
- You can't decide what to do with the money — leave it until you can
Scam alert: any cold call about a "free pension review" or "releasing cash before 55" is a scam — illegal since 2019. Always check advisers on the FCA Register.
Read next: What is a CETV? and Pension consolidation.
Frequently asked questions
Maybe — it depends on the type of pension, current fees, fund choice, and any guarantees. Transferring can cut fees and improve flexibility, but DB pensions often shouldn't be transferred and some old DC pensions have valuable guarantees worth keeping.
Don't transfer if your existing scheme has: a guaranteed annuity rate (GAR) above 8%, a with-profits guarantee, exit penalties over 5%, a defined benefit promise, or a protected pension age. These are valuable benefits you'd lose.
Most modern providers charge nothing to transfer in. Older policies may have exit fees of 1-10% if pre-2001. The biggest 'cost' is usually losing valuable guarantees, not direct fees.
DC pensions usually transfer in 2-4 weeks. DB pensions take 3-6 months and require regulated advice if over £30,000. Lost or paper-based pensions can take longer.
DC to DC: usually no — most providers handle the transfer directly. DB to DC: yes, regulated advice is legally required for transfers over £30,000. Complex situations always benefit from advice.
Yes — partial transfers are increasingly common. Many SIPP providers accept partial transfers in. Useful if you want to keep some benefits in the old scheme while moving others.