If you’re already enjoying flexible access to your pension savings, did you know you can still transfer them to a new plan? This is known as a ‘transfer in drawdown’.

Sticking with the same pension product you started saving with until you’ve accessed all your pension savings might not be the best option for you. If you have an older type of pension, you could benefit from switching to a modern, flexible pension and potentially benefiting from lower charges and more choice in how you invest your pension savings.

And if you have several drawdown plans, you could also benefit from moving them to a single pension provider, which also makes it easier to keep track of.

Of course, transfers in drawdown aren’t suitable for everyone. Depending on the type of plan you have, switching your pension savings into another plan may not be in your best interests, as you could lose valuable benefits which can’t be replaced.

 Here’s some of the benefits of transfers in drawdown: 

  • Lower charges – if you transfer your pension savings to another plan, you could benefit from lower charges, which means your income could last longer.
  • More suitable investment options – you could benefit from a wider range of investments to suit your needs and responsible investment preferences. You could also choose a different investment option for each transfer in drawdown.
  • More choice and flexibility – when you want to access more of your pension savings, you’ll want reassurance that you can do this quickly and easily. If you transfer your pension savings into a modern, flexible plan, you could have more choice over how and when you access your pension savings and the option to leave money behind for loved ones when you die.
  • Less paperwork – it can be difficult keeping track of multiple pensions. If you move them to one pension provider, you’ll have less paperwork and you’ll only need to get in touch with one provider if you’d like to change your income.

You should also remember that investment returns are never guaranteed, so while there’s a chance your savings could grow, their value can also go down – meaning you could get back less than you started with.

If you’d like to find out more about switching your drawdown plans and whether it’s a suitable option for you, please get in touch with James or Ben on 01253 405900 and we can arrange an appointment to review your existing plans and discuss your needs and objectives.