Transfer your pension to a SIPP (2024)

Pension transfer FAQs

• You can transfer most types of pension to the HL SIPP:

  • Personal and stakeholder pensions
  • Pensions in drawdown
  • Retirement Annuity Contracts (RACs)
  • Self-Invested Personal Pensions
  • Most Additional Voluntary Contribution plans (AVCs) including Free Standing AVCs
  • Executive Pension Plans (EPPs)
  • Most paid-up occupational money purchase pensions
  • Old protected-rights pensions accrued from contracting out of the State Second Pension or SERPS (State Earnings Related Pension)

  If you’re part of a defined-benefit (DB) pension, such as a ‘final salary’ scheme, transferring your pension to a personal plan 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 and provide proof that the advice is in favour of transferring.

  Learn more about different types of pension

• If your pension is transferred as cash, this means your provider will sell your pension investments, and transfer the cash amount. You will not be invested during the transfer, so you will not make losses or gains. You can buy investments once the transfer is complete. This usually takes 2-4 weeks, although some transfers can be complex and take longer. Timeframes also depend on actions from your existing provider.

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  If your pension is transferred as it is (invested in the stock market), your provider will transfer each investment and any cash. If you hold an investment that we don’t offer, we’ll contact you during the transfer to confirm your preference. This type of transfer can take several weeks, depending on your investments and provider. You stay invested during the transfer, so could make gains and losses. Usually, you cannot trade until the transfer completes. Please note, we can only accept online applications of this kind for existing Self-Invested Personal Pensions or Small Self-Administered Schemes. If you hold a different pension, and are eligible to transfer your investments, please contact our helpdesk on 0117 980 9926 for a postal application.

• 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.

• 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 circ*mstances.

  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.

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• Find out how SIPPs compare to other pensions, how to choose investments and discover reasons to transfer by downloading a free guide.

  Guide to SIPPsGuide to transferring a pension

• 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

• 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.

• 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.

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