Why would I think about switching my pension?

Just a small change now could make a big difference to how much money you have further down the line. And the size of your pension could be the difference between struggling to make ends meet in the future and a fun-filled retirement.

The quick and easy guide to switching your pension

Quite simply, switching your pension means transferring your savings from your existing scheme, or schemes, to one that offers more of what you need. If you are thinking about changing your pension, for whatever reason, this guide is for you. It explores which types of pension you can switch to and the pros and cons of doing so, as well as what else you need to consider.

The headline facts at a glance

A pension is there to provide for your future. If your current scheme is not right for you, you may be able to switch it to one that better suits your circumstances. Two common reasons for switching a pension are to reduce the management fees and to improve its performance. These changes could add thousands to your fund for when you need it.

As some pensions offer generous benefits, like an income for life in the future, you need to be clear on what you might be giving up by switching. The first step is to be sure you have a pension that can be switched.

Can you switch your pension?

If you have a private or workplace pension then the chances are you can transfer your savings into a different scheme. Although it’s possible to switch from a workplace scheme to a private one, it’s important to remember that you will no longer receive contributions from your employer. If you work in education, the NHS, emergency or civil services then you may have what’s called an unfunded pension, and there is not an option to switch these to private schemes.

Why are people switching to a new pension?

Many people are in pensions that don’t match their circumstances and won’t provide what they need in the future. A switch allows them to have the best possible fund for when they need it by reducing fees, improving performance, or simply offering investments at a more comfortable level of risk.

Of course, lots of people are already in the right pension, in which case a switch could mean giving up valuable benefits such as a guaranteed income for life in the future.

What types of benefits could you be giving up?

In many cases you won’t give up any benefits. All the money in your pension will be moved to the new one just like switching bank accounts. There are exceptions, though. Different schemes, including final salary pensions, may offer various benefits which might include a guaranteed income for life. Leaving these pensions would mean you give up both the guaranteed income and any other benefits.

How do you know if switching your pension is the right thing to do?

As there are various things to consider, it’s not really a decision you should try to make alone. If you are thinking about switching your pension then the best thing to do is talk to a regulated financial adviser. The best option for you depends on your personal circumstances, and we have already helped thousands of people to make the right decision with their pensions. The best part is it won’t cost you a penny to find out what we believe the right option is for you.

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Pension GuideWhat’s covered:

  • A deliciously quick overview of what types of pension you might have
  • The reasons why a transfer could be right for you
  • Industry phrases and what they mean
  • How our approach is different to most, if not all, financial advisers



More information…

There is a lot to think about before switching your pension so we have included below answers to questions we are often asked. And if there’s anything more you’d like to know, we are only a phone call away.

How can I find out the value of my pension pot?

Your pension provider might already send you annual statements that show you the value of your fund, how it is invested and its performance over the year. You can also contact them directly for this information. If you have a final salary scheme, you will have the promise of an income for life and your employer should inform you of what this could be. Alternatively, we can do all of the hard work for you. With our no-obligation review we can find out your pension’s value and also tell you if we believe you would be better off switching to a different scheme.

Do I have to be a certain age to switch my pension?

No, you can switch your pension at any age. In fact, having regular reviews from as early as possible means you will always be aware of your pension’s performance and value. If you are worried, or just curious, about your pension we can carry out a no-obligation review so you can find out if you could be better off in a different scheme. This could be the difference between financial security in the future and trying to make ends meet.

Do I have to switch all of my pensions?

Not at all. If you have more than one pension you can switch as many as you like. Some people choose to combine multiple pensions into one pot, and others like to keep them separate. If you ask us to, we will advise you on what we think would be best for you as part of our no-obligation review.

Call 0800 304 7288 for a friendly chat about your pension

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Frequently asked questions

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