Moving an old workplace pension into a SIPP can simplify a scattered set of pots and widen the investment choice. It can also give up something valuable that is not obvious from a statement. The order that matters is to find out what the existing scheme carries before comparing platforms, because the answer sometimes ends the question.
Find out which kind of scheme it is
GOV.UK distinguishes two main types of private pension: defined contribution, where the value depends on what went in and how investments performed, and defined benefit, where it is based on salary and service. A defined benefit pension is a promise of income, and transferring one out exchanges that promise for a pot of money. That is rarely a straightforward improvement, advice is compulsory above a threshold, and it is a different decision from moving a defined contribution pot.
Ask the existing provider what would be lost
Put four questions in writing. Does the scheme carry a guaranteed annuity rate. Does it carry protected tax free cash above the standard entitlement. Is there an exit penalty. And is there any life cover or other benefit attached that ends on transfer. A guaranteed annuity rate written decades ago can be worth far more than any charge saving, and it disappears the moment the transfer completes. These are facts the current provider must supply, not judgements.
Do not transfer a scheme still receiving contributions
If the pension is the one your current employer pays into, transferring it out generally stops the employer contribution, which is the most valuable feature it has. Old pensions from previous employers are the ones that consolidate sensibly, because nobody is paying into them. The common and sensible pattern is to leave the live scheme alone and gather the dormant ones, which captures the simplification without giving up the contribution.
What this site does not do
It does not advise on whether to transfer, does not arrange transfers and does not recommend a SIPP provider. Advising on a transfer is a regulated activity and for defined benefit pensions above a threshold it is legally required. Where you want a recommendation on your own scheme, the enquiry goes to a firm authorised to give it, and this site is paid as an introducer for the introduction.
Questions people ask about transferring workplace pension to SIPP
Can I transfer any workplace pension to a SIPP?
Most defined contribution pensions can be transferred. Defined benefit pensions are a different matter: transferring exchanges a promised income for a cash value, advice is compulsory above a threshold, and it is rarely a simple improvement.
What should I ask before transferring?
Ask the existing provider in writing whether the scheme carries a guaranteed annuity rate, protected tax free cash, an exit penalty or attached benefits such as life cover. Any of those can be worth more than the charge saving and all end on transfer.
Should I transfer my current employer's pension?
Usually not while they are still paying into it, because transferring out generally ends the employer contribution. Dormant pensions from previous jobs are the ones that consolidate sensibly.
Do I need advice to transfer?
For most defined contribution pots, no. For defined benefit transfers above a threshold, regulated advice is compulsory. This site gives neither and passes an enquiry to an authorised firm where advice is wanted or required.