Pension Transfer Checklist: Everything You Need to Know Before Transferring Your Pension

Transferring a pension — especially a defined benefit (final salary) pension — is one of the biggest financial decisions you can make. The stakes are high, the rules are complex, and mistakes can be permanent. This comprehensive checklist walks you through every stage of the process, from initial questions to completion, so you can approach your pension transfer with confidence.

Part 1: Before You Start — Know What You Have

Before you can make an informed decision about transferring, you need a clear picture of what you are transferring away from. Many people underestimate the value of their existing pension arrangements — particularly defined benefit (DB) pensions, which carry guarantees that simply cannot be replicated in the open market.

✅ Checklist: Understanding Your Current Pension

• Request an up-to-date benefit statement — your scheme should provide this annually, or on request
• Understand your scheme type — is it defined benefit (final salary / career average), defined contribution, or a hybrid?
• If DB: request your Cash Equivalent Transfer Value (CETV) — this is a snapshot valuation valid for three months
• Check your normal retirement date — and any penalties for early retirement within the scheme
• Check for additional guarantees — Guaranteed Annuity Rates (GARs), Guaranteed Minimum Pension (GMP), enhanced tax-free cash entitlements
• Check for employer contributions — if you are still in employment, are you giving up ongoing employer contributions?
• Check for survivor benefits — does the scheme pay a spouse’s/dependant’s pension on death, and at what level?
• Understand your Pension Commencement Lump Sum (PCLS) entitlement — some schemes offer enhanced tax-free cash above the standard 25%

Part 2: Key Questions to Answer Before Deciding

Pension transfer advice is not one-size-fits-all. The suitability of a transfer depends entirely on your individual circumstances. Before engaging an adviser, it is worth reflecting honestly on the following questions:

💭 Personal Circumstances Checklist

• ☐ What is my attitude to investment risk? A DC pension after transfer is subject to market movements; a DB pension provides guaranteed income regardless of markets
• ☐ Do I have other guaranteed income? State Pension, other DB pensions, rental income — the more guaranteed income you have, the less critical it is to preserve one more DB pension
• ☐ What is my health? DB pensions pay for life, however long you live — if you have poor health and a shorter life expectancy, the calculus may change
• ☐ What are my retirement income needs? Do you need maximum flexibility, or do you value the certainty of a regular monthly income?
• ☐ Do I have dependants? Who relies on my income — and how would they be supported if I died? Compare DB death benefits vs personal pension death benefits carefully
• ☐ What is my planned retirement age? From April 2028, the Normal Minimum Pension Age rises from 55 to 57 (unless you hold a protected pension age)
• ☐ Do I have outstanding debts? A pension transfer is rarely the right solution for debt problems — and may be irreversible
• ☐ What is my inheritance planning objective? From April 2027, most pension pots will be subject to Inheritance Tax. DB pensions, by contrast, pay to surviving spouses/dependants and cease on death — no IHT, but also no legacy to pass to children

💰 Financial Health Checklist

• ☐ Do I have sufficient emergency savings (3–6 months’ expenses) held outside of any pension?
• ☐ Have I maximised my employer pension contributions before considering a transfer?
• ☐ Do I understand the impact on my Lump Sum Allowance (LSA: £268,275) and Lump Sum and Death Benefit Allowance (LSDBA: £1,073,100)?
• ☐ Have I considered the tax implications of drawdown income in retirement vs a DB pension income?

Part 3: Finding a Qualified Pension Transfer Specialist

Not every financial adviser is authorised to advise on DB pension transfers. The FCA requires advisers to hold a specific Pension Transfer Specialist (PTS) qualification before they can provide this advice. Selecting the right adviser is one of the most critical steps in this process.

🔍 Adviser Due Diligence Checklist

• ☐ Verify FCA authorisation: Search the adviser firm and individual on the FCA Register. Look for “Pension transfers and opt-outs” as a permitted activity
• ☐ Confirm PTS qualification: Ask the adviser directly — do they hold the Pension Transfer Specialist qualification? Which one (AF3, G60, or equivalent)?
• ☐ Check for complaints history: Review the FCA Register for any regulatory actions or upheld complaints
• ☐ Understand the fee structure: Is advice charged as a percentage of the transfer value, a fixed fee, or hourly? Confirm whether you pay even if the advice is not to transfer
• ☐ Check Professional Indemnity Insurance (PII): A regulated adviser must hold PII — ask for confirmation if in any doubt
• ☐ Avoid cold contact solicitation: Unsolicited calls, texts, or emails offering to review your pension are a serious red flag

Part 4: The Advice Process — What to Expect

Understanding what a proper pension transfer advice process looks like helps you ensure you are receiving the standard of service the FCA requires — and to spot poor practice.

📋 The Advice Process Checklist

• ☐ Initial consultation: The adviser should gather comprehensive information about your personal and financial circumstances before offering any opinion
• ☐ Abridged advice (optional): Many advisers now offer an initial abridged advice stage — a lower-cost first filter that can recommend against a transfer without full analysis, saving time and cost if the answer is clearly no
• ☐ Transfer Value Analysis (TVAS): For full advice, the adviser must conduct a TVAS or Appropriate Personal Pension (APP) comparison, comparing the projected benefits of staying in the scheme vs transferring
• ☐ Critical Yield calculation: The adviser must calculate and present the investment return required for the transferred pot to match the benefits given up — this is a key number to understand
• ☐ Suitability report: You must receive a written suitability report explaining the recommendation and the reasons behind it before any transfer is executed
• ☐ Right to cancel: After receiving advice, you have a cooling-off period. Do not feel pressured to act immediately
• ☐ Understand the recommendation: If the recommendation is NOT to transfer, that is a valid — and often correct — outcome. The majority of DB transfer advice results in a recommendation to stay in the scheme

Part 5: Documents You Will Need

Gathering the right documents early speeds up the advice process significantly. Below is a comprehensive list of what a pension transfer specialist is likely to require:

📁 Document Checklist

From Your Pension Scheme:

• ☐ Latest annual benefit statement
• ☐ Cash Equivalent Transfer Value (CETV) quotation — request this formally from the scheme in writing
• ☐ Scheme booklet or member guide (explaining rules, death benefits, early retirement factors)
• ☐ Any augmentation or enhancement offers made by the scheme

Personal Documents:

• ☐ Proof of identity (passport or driving licence)
• ☐ Proof of address (utility bill or bank statement, dated within 3 months)
• ☐ National Insurance number
• ☐ Details of all other pension arrangements
• ☐ Details of other savings and investments
• ☐ Current employment details and salary
• ☐ Details of any outstanding mortgages or significant debts
• ☐ Details of existing life assurance and protection policies
• ☐ Information about dependants (spouse, children, other financial dependants)

Tax and Financial Documents:

• ☐ Most recent P60 or self-assessment tax return
• ☐ Details of any protection registered with HMRC (Enhanced Protection, Fixed Protection, Individual Protection)
• ☐ Any previous pension transfer history
• ☐ Details of any pensions already in payment

Part 6: After the Transfer — What to Check

Completing a pension transfer is not the end of the process. The funds now in your personal pension will require active management and monitoring throughout your retirement journey.

✅ Post-Transfer Checklist

• ☐ Confirm receipt of funds: Verify the transfer value has been received by the receiving scheme promptly (most transfers complete in 4–12 weeks)
• ☐ Review your investment strategy: Ensure funds are invested in line with your agreed risk profile and retirement timeline — do not leave a large sum in the default fund indefinitely without review
• ☐ Update your expression of wishes: Nominate your beneficiaries formally with the new pension provider — this affects where death benefits go
• ☐ Update your will if necessary: Pensions sit outside your estate for probate purposes, but your broader estate planning may need reviewing
• ☐ Schedule regular reviews: Your circumstances and the investment environment will change — annual reviews with your adviser are strongly recommended
• ☐ Understand your decumulation options: You are not obliged to take income immediately after transferring. Explore your options: fixed term annuities, flexi-access drawdown, phased retirement
• ☐ Keep records: Retain all advice documentation, the suitability report, and transfer confirmation documents permanently

Part 7: Red Flags and Scam Warning Signs

Pension scams remain a significant threat in the UK. The FCA and The Pensions Regulator (TPR) estimate that billions of pounds have been lost to fraudulent pension liberation schemes. Knowing the warning signs could protect your retirement savings.

If you suspect a scam, report it to the FCA and Action Fraud. You can also use the FCA ScamSmart tool to check any investment opportunity.

Part 8: Final Decision Checklist

Before signing any transfer forms, work through this final checklist. If you cannot tick every item with confidence, stop and seek clarification.

Seeking Professional Guidance

This checklist is designed to help you ask the right questions and gather the right information — but it is not a substitute for regulated financial advice. Pension transfers, especially from defined benefit schemes, are complex decisions with permanent consequences. The FCA requires that anyone with safeguarded pension benefits over £30,000 receives regulated advice before transferring, and for good reason.

A qualified Pension Transfer Specialist will assess your complete financial picture, model the long-term outcomes of transferring versus staying in the scheme, and provide a clear written recommendation tailored to your personal circumstances. This process is thorough for a reason — it is designed to protect you.

Whether the outcome is a recommendation to transfer or to remain in your existing scheme, the value of proper, regulated advice is in the certainty it provides. You will know, with professional backing, that the decision made is the right one for your situation.