SIPP transfers

Nowadays, a new job usually means a new pension. Before long, many people have more pensions than they can manage or even remember. And admin isn’t the only problem.

When your pots are here, there and everywhere, it’s harder to tell whether you’re saving enough for retirement.

Combining your pensions could be the answer. In an AJ Bell Self-invested personal pension (SIPP), it’s easy to see how your pension is performing, as well as what you're paying in charges.

SIPPs are a type of pension suitable for investors comfortable making their own investment decisions. If you’re not sure you are, or whether a transfer is in your best interests, please contact a financial adviser.

Why transfer a pension to a SIPP with AJ Bell?

• Control – our SIPP lets you manage your pension yourself 24/7, both online and on the go with our mobile app
• Low cost – it’s free to open a SIPP and transfer in an existing pension, and you can buy investments from just £1.50
• Choice – access a much greater range of investments than a traditional pension scheme. That includes our no-hassle AJ Bell funds, and time-saving investment ideas
• Convenience – just one pension to keep an eye on, meaning less paperwork and fewer logins to remember
• Extra retirement options – when the time comes to access your SIPP, you’ve greater choice about how you do it, such as via drawdown

Episode 12: Transferring and consolidating pensions

Our experts discuss the benefits of combining your old and lost pensions into one single pot – easier management, less administration and paperwork, and smaller charges.

Listen to our Investing Essentials podcast

Should I transfer to a SIPP?

You can easily transfer most types of UK pensions to us – including occupational pensions, and even pensions you've already started taking an income from.

But before you decide to transfer a pension to a SIPP, it’s important to make sure you won't lose any valuable benefits by doing so.

Here are the most important questions to ask your current provider:

• Will you be charged an exit penalty or face a market-value adjustment (MVA)? This refers to any potential reductions you may face if you take out money from your pension before the agreed pension age.
• Will you lose any valuable benefits? Examples include a guaranteed annuity rate, the right to take more than 25% of your fund tax free, or a pension paid to your spouse when you die.
• Can you transfer the investments as they are, or will you need to sell them first?

If you’re unsure about transferring to a SIPP and whether it’s right for you, then please contact a suitably qualified financial adviser.

If you’re in ill health, it's a good idea to seek financial advice. There may be an Inheritance Tax liability if you don’t survive the pension transfer by two years.

If you’re over 50 and want to transfer a pension to a SIPP, you’ll also be offered free and impartial guidance from the government’s Pension Wise service.

Can I transfer my work pension to a SIPP?

Yes, you can transfer most UK pensions to a SIPP, and that includes any workplace pensions you’ve started during your career.

Just remember that while it can be a good idea to transfer old pensions, opting out of your current workplace pension should be a last resort. That’s because you’ll be effectively turning down the free money of a matched employer pension contribution.

You should also consider any cost differences between your current workplace scheme and a SIPP. A SIPP gives you the freedom to build your own investment portfolio, but the cost of managing it could be higher than the cost of the default fund or other investment options your workplace scheme offers.

If you're sure you still want to transfer, it's usually possible to transfer the money you’ve saved in it so far to an alternative scheme. But first, make sure you’re comfortable managing two pension pots at the same time. It’s unlikely your provider will agree to direct your future contributions (and the valuable employer match) into a scheme it hasn’t chosen.

Can I transfer a defined benefit (final salary) pension?

Final salary, or defined benefit, pensions come with valuable guarantees that you’d lose if you transferred them elsewhere. These guarantees are known as ‘safeguarded benefits’. Examples include a guaranteed income that increases with inflation, and death benefits payable to your dependants.

To transfer a final salary pension scheme to a SIPP, or to transfer any scheme with safeguarded benefits worth at least £30,000, a suitably qualified financial adviser must recommend that the transfer is in your interests. To confirm you’ve received their recommendation, you and your adviser will need to complete our financial advice declaration form.

To find a suitably qualified financial adviser, you can look on websites such as vouchedfor.co.uk, moneyhelper.org.uk or unbiased.co.uk.

How easy is it to transfer to a SIPP?

If you’ve decided you want to transfer to an AJ Bell SIPP and have all the details of your previous pensions, here’s how to get started:

Already an AJ Bell customer? You have two options:

• If you know you have pensions from previous jobs but don’t know the details to make the transfer, log in and find your lost pension pots through our Pension Finder service.
• If you already have a SIPP with us and know your pension transfer details, you can start the process by logging in and from the 'My account' menu, choosing 'Transfers', then 'SIPP'.

How long does a SIPP transfer take?

It depends on whether you transfer your pension as cash only, or transfer your current investments as they are along with any cash you hold.

Transferring your pension to a SIPP as cash only is likely to be quicker, but you’ll have to sell your existing investments first, meaning you’ll be out of the market while the transfer takes place.

If you transfer your investments to a SIPP as they are you won’t be out of the market, but the transfer is likely to take longer. You also won’t be able to buy or sell investments until the transfer has completed.

Below is how long each type of investment typically takes to transfer to a SIPP:

Can I transfer my SIPP to another provider?

Yes, you can transfer all or part of your AJ Bell SIPP to another UK-registered pension scheme or qualifying recognised overseas pension scheme (QROPS). You can read more about transferring to another provider, or you can call us on 0345 54 32 600 and we’ll explain the process to you.

Can I transfer part of my SIPP?

Yes, though it depends on whether you've accessed it. If you've already accessed your SIPP, you’ll need to transfer the part you've accessed in full to your new pension scheme. But you can transfer as much or as little of any unaccessed part of your SIPP as you like.

Open a SIPP

An AJ Bell SIPP gives you complete flexibility on how much you save for retirement, and allows you to decide when and where your pot is invested.

More on SIPPs Open an account

Options at retirement

You've saved hard for your retirement, but once you get there, what are your options?

See retirement options