Pension transfer or consolidation

Jontxu

Hi,

I want to consolidate 2 pensions into one, however, when I rang Scottish Widows, they told me I would need the services of a financial advisor and their confirmation for them to accept money from another fund. I have never come across this situation. I found it bizarre. ANy advice please?

Thanks
Jon

Albermarle

What type of pension is it ? If it has guaranteed benefits, like a final salary scheme , then you can not transfer any sum over £30k without the relevant financial advice.

If it a simple DC pot you want to transfer , some pension providers will not deal with members of the public directly and will only work via an advisor. I think more of the big traditional pension providers like SW are moving in this direction.

JoeCrystal

Albermarle wrote: »

If it a simple DC pot you want to transfer , some pension providers will not deal with members of the public directly and will only work via an advisor. I think more of the big traditional pension providers like SW are moving in this direction.

Royal London is another of the pension provider that insist on advisor as well.

Marcon

Have you read this: https://www.scottishwidows.co.uk/retirement/pension-transfers/can-i-do-it/

jamesd

Did you say "transfer" instead of consolidate or switch? I'm asking because in strict pension terminology:

"transfer" means moving money from a defined benefit or other pension with protected benefits to a personal pension
"switch" means move from one personal pension

So confusion about what you wanted is one possible reason.

But there's a more likely reason. Workplace schemes are normally set up with an adviser and using products not available to consumers. So it could just be the specific product that you're in causing the advise requirement. Switching out of that then switching the other pension into the new one to consolidate may work

Beware, there's a chance that costs could be higher after a switch even for the same investments. Workplace scheme often get discounts.