Why Did I Pay Tax on my Pension Lump Sum?
Question asked by Henry Evans
I’ve been at my current employer for a number of years and have built up a pension entitlement, would this be lost if I moved to a different company?
No. Pension benefits held in a final salary scheme are protected by the Scheme Rules and Government legislation. Therefore, the pension benefits you’ve built up by the time you leave the company will at least receive statutory increases until you retire.
If you hold a money purchase personal pension, the pension fund is held in your own name and will potentially continue to accumulate depending on the underlying assets of the fund. However, employer contributions into your pension pot will stop.
You can transfer a defined contribution pension to a new pension fund if you move employers.
If you have a number of different pensions from previous employers it can often make a lot of sense to consider pension consolidation. Please contact us for further information.