🌟 Thinking of Transferring Your Pension? Here's What You Should Know! 🌟

Pensions are one of the most important parts of planning for your future—but sometimes, people consider transferring their pension to another scheme. If you're wondering why, or whether it's right for you, here’s a quick guide to help you make sense of it all.

🔍 Why Do People Transfer Their Pension?

There are a few common reasons:

1. More Flexibility – Some pension schemes offer more control over how and when you access your money, especially if you're moving from a defined benefit (DB) to a defined contribution (DC) scheme.

2. Better Investment Options – You might want access to a wider range of funds or lower fees.

3. Consolidation – If you’ve had multiple jobs, you might want to combine pensions into one pot to make things simpler.

4. Early Access or Inheritance Planning – Some people want to access their pension earlier or pass more on to loved ones.

5. Poor Scheme Health – If your current pension scheme is underfunded, you might feel safer moving it elsewhere.

⚠️ But Be Careful…

Transferring a pension—especially from a defined benefit scheme—can mean giving up valuable guarantees like a secure income for life. Here’s what to watch out for:

• Loss of Benefits – You could lose guaranteed income, inflation protection, or death benefits.

• Scams – Sadly, pension scams are on the rise. Always check that any adviser or scheme is FCA-authorised.

• High Fees – Some transfers come with hidden costs or ongoing charges that eat into your savings.

• Investment Risk – With more control comes more responsibility. Your pension could go up or down depending on market performance.

✅ What Should You Do?

• Get Regulated Advice – If your DB pension is worth over £30,000, it’s a legal requirement to get advice before transferring.

• Use Trusted Resources – Services like Pension Wise and MoneyHelper offer free, impartial guidance.

• Take Your Time – Don’t rush. A pension is a long-term decision—make sure it’s the right one for you.

Reach out to Clearpensions for support or help with understanding! we are here to help!