The pension transfer is an option which you may consider. Remember, that if you decide to leave your current pension scheme, all your benefits which you have built up will still belong to you.
It depends entirely on you whether you will leave these benefits where they are or you will take further steps to transfer them to another pension scheme.
If you consider the option of a pension transfer you may need to make a consultation first with an expert. Main topics of discussion then may be related to the possible scenarios where and how to make the pension transfer and to the associated with these possibilities costs.
The pension transfer can be done through a shift of your pension pot to:
- Workplace pension scheme,
- Personal pension scheme,
- Self-invested personal pension (SIPP) or
- Stakeholder pension (SHP) scheme.
If you decide to transfer your pension to an offshore pension scheme you may do this choosing an overseas pension scheme.
As already explained in our previous articles, you may choose to make a pension transfer to an overseas pension scheme considering the main factor, that the overseas pension scheme should be recognised by HM Revenue & Customs as a Qualifying Recognised Overseas Pension Scheme (QROPS). This means that this scheme must be regulated as a pension scheme in the country where it is established. In addition, it should be recognised for tax purposes as well.
If you plan a pension transfer, possibly, your next question will be: “When is the most appropriate time to make a pension transfer?”. Similar to the freedom you have to make this decision it’s up to you to decide when will be the most convenient time to you.
According to the law, you may make a pension transfer at any time up a year before the date that you are expected to start drawing retirement benefits. In some cases, you may also shift to a new pension provider after you have started to draw retirement benefits.