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Why can't I transfer out of employer's pension into Vanguard consolidated pot?
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[Deleted User]
Posts: 0 Newbie

Hello
I'm 40 so a few years to go yet before retirement!
A few years ago, I consolidated my old pots into a Vanguard pension.
I have been told I can't transfer money out of my current employer's pension into this Vanguard pension. I'd need to wait until I moved employer and it was no longer receiving contributions. Why is this?
Thanks
I'm 40 so a few years to go yet before retirement!
A few years ago, I consolidated my old pots into a Vanguard pension.
I have been told I can't transfer money out of my current employer's pension into this Vanguard pension. I'd need to wait until I moved employer and it was no longer receiving contributions. Why is this?
Thanks
0
Comments
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I'd need to wait until I moved employer and it was no longer receiving contributions. Why is this?Not all pension schemes support partial transfers (in particular older schemes).
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Employers will only submit to 1 pension account. They have to tell the Prensions Regulator who that is.
Most pension companies won't let you transfer out while contributions are still being made0 -
Most pension companies won't let you transfer out while contributions are still being madeIndeed, under auto-enrolment rules, they cannot transfer fully until the person is no longer classed as an active member.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks all.
Why though? What is the reason behind this rule? Who benefits from it?0 -
Why though? What is the reason behind this rule?Group schemes or occupational pensions are not run the same way as individual schemes. A lot of individual providers don't allow partial transfers either.
Partial transfer functionality is a relatively modern thing. Many pension schemes are running on decades old software. It costs a lot of money to bring in functionality on a legacy scheme. So, a balance has to be had on the costs of bringing in functionality for something that most employers will never be asked to provide.
On a more modern plan, that was built more recently, that functionality will be in place by default in many cases and not require paying for.99.9% of pension holders who never use partial transfers.
Who benefits from it?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.6 -
KirstenNeilson said:Thanks all.
Why though? What is the reason behind this rule? Who benefits from it?
Not sure why you want to transfer your current pension scheme to Vanguard. I can understand consolidating previous pensions into the same pot (does help to keep track!), but give you are still paying in to this one, you know where it is... Maybe look at changing your fund choices within your current scheme if that's also a driver behind wanting to transfer?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!2 -
Thanks guys.
Interesting, so things may change in the future.
I'm just a big fan of Vanguard and it has more choice re funds than my employer's provider.1 -
[Deleted User] said:Thanks guys.
Interesting, so things may change in the future.
I'm just a big fan of Vanguard and it has more choice re funds than my employer's provider.1 -
I'm just a big fan of Vanguard and it has more choice re funds than my employer's provider.And I am a big fan of whole of market platforms that have tens of thousands more investment options than Vanguard. However, that doesn't mean you are going to use them all and most half decent workplace pensions have sufficient investment options that are comparable to what you are likely to use.
Even if you could do a partial transfer, the time out of the market could cause you a loss that you never recover in the alternative.
So, look at what your scheme has and look for comparable options.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.3 -
dunstonh said:I'm just a big fan of Vanguard and it has more choice re funds than my employer's provider.And I am a big fan of whole of market platforms that had tens of thousands more investment options than Vanguard. However, that doesn't mean you are going to use them all and most half decent workplace pensions have sufficient investment options that are comparable to what you are likely to use.
Even if you could do a partial transfer, the time out of the market could cause you a loss that you never recover in the alternative.
So, look at what your scheme has and look for comparable options.
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