Transfer a pension

FAQs

• Can I transfer just some of my pension?

  It may be possible to request a partial transfer of your pension to HL instead of being required to transfer the full amount. This can also allow you to transfer a portion of the pension from your current employment, while keeping the existing pension open to continue to receive contributions.

  Not all providers can facilitate a partial transfer so we recommend that you check whether your current provider can before instructing a transfer with us.

• Can you transfer a defined benefit (DB) pension into a SIPP?

  If you have a defined benefit (DB) pension, such as a ‘final salary’ scheme, transferring your pension to a personal plan (like a SIPP) is probably not in your best interest. These pensions not only give you a guaranteed income, they also normally offer benefits to a spouse or partner once you die. You might be able to transfer, but if the transfer value is more than £30,000, you’ll have to take advice from a regulated financial adviser. If you’d like to transfer to HL, you’ll also need to provide proof that the advice is in favour of transferring.

• What is a pension transfer value?

  If you have a defined benefit pension, like a final salary scheme, then your pension transfer value (or cash equivalent transfer value), is the amount of money which would be transferred to another provider. Transferring this type of pension normally isn’t a good idea. Value benefits and guarantees are typically lost upon transfer.

  If you have a defined contribution pension, then your transfer value is usually estimated. The actual amount that will be transferred to your new provider will depend on the value of your investments on the date you transfer.

• Can I transfer to you and then take money out of my pension immediately?

  Yes, but normally only if you’re 55 or over (rising to 57 from 2028). You just need to let us know before you transfer your pension and we’ll talk you through your options and send you the appropriate application forms. Remember that tax and pension rules change and benefits depend on individual circumstances.

  What you do with your pension is an important decision. The government's free and impartial Pension Wise service can help you understand what type of pension you have, how you can access your savings and the potential tax implications of each option.

• What are the charges to transfer to another provider?

  There are no charges to transfer your SIPP either as stock or cash to another provider, and there is no charge for closing your account. Dealing charges may apply to the sale of any investments. For more information please view our SIPP charges or call our Helpdesk on 0117 980 9926.

  Before transferring, please ensure you’ll benefit from doing so, and won’t lose valuable guarantees or need to pay high set-up fees. If your investments are sold and transferred as cash, you’ll be out of the market until your transfer completes. If markets fall, this will work in your favour. But if markets rise, you’ll miss out on those potential gains. If you are transferring your HL SIPP to a non-mainstream pension provider then we may need to request further information about your new pension provider. This could increase the time it takes to transfer your SIPP.

  Please also check that your new provider is authentic. Unfortunately, there are investment scams out there which target people who've withdrawn, or plan to withdraw money from their pension and other accounts. They can also persuade people to transfer their pension to another pension within which there is an investment scam. These scams tend to involve firms and/or investments which aren’t regulated by the FCA, so if you fall victim to them there may be no compensation available.

  Often fraudsters will attempt to make their ‘sales pitch’ as realistic and attractive as possible. They’ll aim to build a rapport with you – sharing fake reviews, using convincing literature and websites or claiming to be regulated. Warning signs can include cold calling or texting, pressure to act quickly, the promise of unique or unusual opportunities, the offer of quick and easy profits or something that seems too good to be true. Scammers might also offer free pension reviews and the chance to release money from your pension early, which isn’t normally allowed before age 55 under current pension legislation. You can find out more at www.fca.org.uk/scamsmart or by visiting our security centre.

  MORE ABOUT TRANSFERRING TO ANOTHER PROVIDER

• Can I transfer my pension to my partner?

  Typically, pensions can only be transferred to a spouse or partner upon death or divorce.