01: From where to where?

Transferring your pension is not an exercise to be undertaken lightly. If you make the wrong transfer, then you could seriously damage your retirement finances. On the other hand, the right transfer could mean higher retirement benefits and greater flexibility in how and when you choose to draw them. In many cases the correct action may be to do nothing and leave your pension benefits where they are.

The subject of transfers broadly splits into two parts:

1. Transfers out of defined benefit (final salary) occupational schemes. Whether to transfer is normally only an issue once you no longer work for the scheme’s sponsoring employer.
2. Transfers from defined contribution arrangements, including money purchase occupational schemes, executive pension plans, personal pensions and former retirement annuities. The issues here tend to be less complex than those surrounding defined benefit schemes.

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