Guide

Pension planning for business owners

Transferring your pension

You may be thinking about transferring your pension, perhaps because you have seen another pension product offering more attractive benefits.

Before you do so, take a close look at the penalties of leaving your existing scheme. Ask your pension provider for a transfer value to find out how much you stand to lose. You may decide that, even with the penalties incurred, it is still worth transferring to the new scheme.

Make sure you have compared the different products as closely as possible, particularly projections of final income.

Note that there is no cooling off period if you transfer a pension, so it's vital to get it right. There is no charge for transferring a stakeholder pension.

Starting an additional pension scheme

If you decide that it's not worth transferring your pension you may instead be able to start up a new pension scheme in addition to your existing one.

However, check whether or not you can reduce payments to your existing pension and whether there is a charge for doing this. If you can reduce payments to your existing scheme, you will be able to pay more into the new scheme instead.

The consequences of transferring your pension are significant, so you might like to get professional advice. The Pensions Advisory Service Helpline on Tel 0300 123 1047 can give you information and guidance.

For more information, see the Financial Ombudsman Service guidance on how to complain or resolve a dispute with a financial organisation.