Reviewing your older pensions
There are three steps to working out if you could potentially save £1,000s in fees from your older pensions by switching to interactive investor.
Find the older plans you’ve got
Make a list of all the pensions you think you have and where you got them from.
If you’ve lost touch with any of your pensions, reconnect with them. If it’s a workplace plan the employer you got it through might be able to help. Otherwise use the government’s Pension Tracing Service at www.gov.uk/find-pension-contact-details
Gather some key facts about each
Gather together all the information you have for each pension. Annual statements are a good place to start. All pension providers should send you one each year.
Hint: If you agreed to go paperless you might have to login to an online service to get your latest annual statement.
Use your information to gather the key facts you’ll need to weigh up the pros and cons for each pension. If anything is unclear, contact the provider to ask them for the answer.
Checklist of key facts you might need
What type of pension is it?
The main two types are defined benefit and defined contribution pensions. If you have a defined benefit pension you must take financial advice if the value is £30,000 or above, though it’s always good to get advice as you’ll be losing guaranteed benefits. Often it’s not a good idea. The rest of this checklist is for defined contribution pensions.
How much is it currently worth?
This will give you an idea of the amount of money you’d potentially be switching.
What funds am I invested in?
This might help you with investment decisions for your interactive investor pension if you do decide to switch.
Are you invested in a with-profits fund?
You may lose out on investment returns or have some money taken from your fund when you transfer if yes.
What are the annual product and investment charges?
You may find it helpful to get these broken out separately if you can. So you can compare investment costs for equivalent funds with interactive investor, for example.
Am I able to transfer to another provider?
There are a very few specialist types of pension where this might not be possible, so it’s worth confirming just in case.
Are there any charges for transferring and what will these be?
If the answer is yes, you’ll need to factor any transfer charges into your comparison of the pros and cons of switching.
Do I have any guarantees or protected benefits that I would lose if I transfer?
If you have any guarantees or protected benefits, such as guaranteed annuity rates or protected tax-free lump sums, it might make you think twice as it could cost a considerable amount for you to replace them.
Weigh up the pros and cons
With your key information gathered you’re ready to weigh up the pros and cons and decide whether a switch to ii is right for you.
Get support if you need it.
Your pension savings are likely one of your most valuable financial assets. Before you decide to transfer a pension to us, it's important that you make sure it's the right thing for you. You should ensure that you won't lose any valuable benefits, like guarantees or bonuses, and you should find out what your exit fees will be before starting. If you're unsure, we recommend seeking the advice of a qualified financial adviser.
When you have reviewed your older-style pensions and decided to switch them to interactive investor, you can add a SIPP to your account or transfer your pensions to your existing SIPP.
The ii SIPP is aimed at clients who have sufficient knowledge and experience of investing to make their own investment decisions and want to actively manage their investments. A SIPP is not suitable for every investor. Other types of pensions may be more appropriate. The value of investments made within a SIPP can fall as well as rise and you may end up with a fund at retirement that’s worth less than you invested. You can normally only access the money from age 55 (age 57 from 2028). Prior to making any decision about the suitability of a SIPP, or transferring any existing pension plan(s) into a SIPP we recommend that you seek the advice of a suitably qualified financial adviser. Please note the tax treatment of these products depends on the individual circumstances of each customer and may be subject to change in future.