How long should a Pension Transfer take?
This is probably a given, but something that is often overlooked after the process has occurred. It’s easily done, we’re only human and pension transfers aren’t necessarily always the smoothest. With such a large amount of your money being transferred from one pot to another, it is quite a daunting and stressful time, even though it doesn’t have to be.
When it comes to our personal money, there is every reason to be attached to it and concerned about what is going where, so it’s only natural you want a basic outline of how long this is going to take. With modern technology in place, some pensions can be transferred extremely efficiently.
Whether this is within 4- 6 weeks, you may be pleasantly surprised by how smooth it can be if you have a good level of financial advice and a proactive provider. If your provider is a bit more old school, they may have a manual transfer in place. This can sometimes take up to 12 weeks to complete.
These cases aren’t rare and they do still exist, especially if your pension is dating back several decades ago. But generally speaking, 12 weeks is the maximum timeframe allowed for a pension transfer and it shouldn’t really be going over this. This is just the transfer itself, and not taking into consideration the groundwork you need to put in prior to this.
Before the actual transfer, itself takes place you need to obtain your pensions transfer value from your provider and also work out any fees, deductions or added benefits. Obtaining this information from your provider can be fairly simple, but this also depends on your provider.
Having a financial advisor readily available would be extremely beneficial in this situation as they can breakdown and simplify any financial jargon. After you have received all your relevant information from your current provider and are ready with a new provider in place, then the transfer itself can begin to be finalised.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.