Myths about transferring your pension
Thinking about consolidating your old pension pots but worried it could be too complicated? We dispel the top 3 myths about pension transfers.
1. It will take too long
These days an online pension transfer usually takes just 2-3 weeks. All we need is your pension provider name and your policy number to get your transfer started. Normally this happens entirely electronically but if we need you to sign a form, our pensions team will get it out to you the next working day. You can track the progress of your transfer any time in the Moneybox app.
To make it even easier to transfer your old workplace pension pots to a Moneybox Personal Pension, we’ve created a dedicated support service to help you track down where your old pots are located. Simply fill out a few details about your previous employers and our team will do the rest! If you have already begun your transfer into a Moneybox Personal Pension and are unsure of your old provider, tap here to get help!
Choosing an investment fund for your pension is also simple. We offer three investment options, including a socially responsible fund and can all be done from within the app.
2. Transferring my pension will cost too much
The financial regulator has introduced new rules to limit the exit charges providers can make, so it’s unlikely you’ll pay expensive exit fees. There could be other fees associated with transferring your pension, so it’s best to double check this with your provider. If your existing provider is charging a fee to leave/transfer your pension, they should make you aware of this prior to the transfer.
Transferring your pension could save you money. Even if you have to pay a fee to leave in the short-term, it’s worth weighing up how much you could save by paying lower charges over the longer-term- see our pension fee comparison as an example. Remember, the lower the fees you pay on your pension, the more money there will be for your retirement. Make sure you check how much you’re paying with your current pension providers.
It’s important to note that if you have a defined benefit pension, such as a final salary scheme, you shouldn’t make a decision to transfer without getting independent financial advice first. This is because you could lose out on certain benefits as a result of transferring.
3. It’s risky to have my pension with just one provider
It’s often said that you shouldn’t put all your eggs in one basket. But when it comes to pensions, this doesn’t always ring true. Most major pension schemes use large funds that are invested across a range of financial assets from around the world. This is known as diversification and spreads the risk across different assets.
Multiple pension schemes can be difficult to keep track of – having them all in one place can make them easier to manage and you might benefit from lower fees. For peace of mind, your money is guarded at the fund level and protected by the Financial Services Compensation Scheme.
This is what some of our customers had to say about their pension transfer experience with Moneybox:
“It was painless and now I use the app, I can see how my pension is doing, how I want it invested and everything is at the touch of a button. It’s great.” – James
“Moneybox have made organising my pensions so easy and have provided me with friendly service throughout. I’ve been waiting for a service like this for making a boring process, easily manageable.” – Anu
“My experience with Moneybox has been very personal. They always kept me up to date!” – Karen
Please note Moneybox cannot accept a pension you’re currently paying into, or any old pensions that provide guaranteed benefits when you retire.
Although majority of transfers are completed electronically, in light of current events we’re unable to accept manual pension transfers by post as the team is working remotely. Please get in touch with our customer service team for more information.