Why can't I transfer out of employer's pension into Vanguard consolidated pot?

36 Posts

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
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Most pension companies won't let you transfer out while contributions are still being made
Why though? What is the reason behind this rule? Who benefits from it?
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.
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?
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.
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.