What should I consider before transferring my pension pot?

Some pension schemes have features or benefits which you’d lose if you transferred to another scheme. You’ll need to consider whether losing these benefits still makes it worthwhile transferring your pension pot. These features and benefits may include:

  • the opportunity to take a higher proportion of benefits in the form of a ‘pension commencement lump sum’ (normally no more than 25% can be taken as tax-free cash)
  • a loyalty bonus
  • built-in or enhanced life insurance benefits or waiver of premiums
  • enhanced death benefits
  • entitlement to a low retirement age (earlier than age 55).
  • Impact on your normal minimum pension age

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