How is an Annuity Taxed?
Question asked by Mr R Stein
I know I’ve got old private pensions from former employers with a decent fund value. Can I transfer these old pensions to my new personal pension or consolidate them all somehow?
It depends who your pension is with. For example, you cannot transfer from a public sector scheme.
If you have defined contribution scheme you want to transfer, then you will usually be able to do this, but you’ll need to check with your scheme’s trustees what this involves and whether there are any charges to factor in.
You should also look at the investment options offered by the scheme you are moving to, and at the fees you may have to pay.
If you’re considering transferring from a defined benefit to a defined contribution scheme, then remember you will be giving up a guaranteed pension income in return for benefits which depend on investment performance. You should seek financial advice before transferring to ensure this is the right decision. It won’t be right for most people, who’ll be better served with the income for life option.
You can find out more in our guide to pension consolidation →.
Please contact us if you would like to speak with one of our specialist pension transfer advisers. We can obtain pension details and valuations on your behalf and make recommendations on whether pensions should be transferred or not. The discovery part of our process is free of charge and fees are only due if advice is required.