Transferring my pension

We're not able to tell you whether transferring your pension is the right choice for you, but we can tell you some of the things you should think about before deciding.

You can only transfer your pension to another pension arrangement if it’s registered with HM Revenue & Customs (HMRC). This could be:

  • An employer’s scheme (if it’s able and willing to accept transfers in); or
  • A personal pension scheme; or
  • A recognised overseas pension scheme.

Transferring your benefits from the Scheme means that you’ll almost always be converting a guaranteed pension into a cash value and transferring it into a defined contribution fund, where you’ll need to decide where to invest it and keep checking up on how much it’s worth.

It may not always be in your best financial interests to transfer your benefits out of the Scheme, and it’ll depend on:

  • Your plans for retirement
  • Your individual circumstances
  • How much you’ve saved in the Scheme and elsewhere, and
  • How much you think you’ll need in retirement and how you’d like to receive it.

Flexibility with your pension

You might be thinking about transferring your pension to another scheme so you can take your benefits in a more flexible way. A defined contribution scheme may allow you to:

  • Take all your savings as a taxable cash lump sum.
  • Get a regular pension (known as an annuity).
  • Keep your savings invested and take money out as small lump sums or regular payments.

The options available to you will depend on the pension provider and the arrangement you choose. Once transferred, your pension will stay invested in the funds with your new provider until you decide to take it.

Getting advice

Although this may involve an initial cost to you, getting support to make the right choice for your circumstances will mean you’re more likely to make a more informed decision which could benefit you more in the long term.

The Trustee and the Horizon Pension Team aren’t able to give you financial advice. You should discuss the implications of a transfer with a financial adviser before deciding.

If the transfer value of your Horizon pension is over £30,000, you’ll need to take financial advice and confirm you’ve done so before a transfer can go ahead.

LV= have been carefully selected by the Trustee of the Horizon Pension Scheme to provide independent advice, paid for by the Trustee, to members aged 54 and over (members aged under 54 can still access the service but at a cost). You can find out more about this here. Alternatively, you can find an independent financial adviser in your local area by visiting MoneyHelper.

Watch out for scams!

It’s important to make sure the scheme you’re transferring your benefits to is a legitimate one. Make sure you read the Pensions Scams page to find out how to protect yourself and look for warning signs.

Learn how to protect yourself

How your transfer value’s calculated

When we calculate the value of your benefits, we make assumptions about future events and how much cash the Scheme would need to have today to pay your pension in the future. This includes:

  • how much your pension might increase in line with the Scheme Rules.
  • your life expectancy, based on statistical averages rather than individual circumstances.
  • what investment returns the Scheme might achieve in the future on the cash invested today.

In addition, to provide a value as at the date of your request, an adjustment is applied to reflect current investment market conditions. This is updated monthly.

As the Trustee reviews the assumptions it uses and investment market conditions change from month to month, you’ll find that your transfer value can go up or down over time.

Getting a transfer quote

If you’d like a transfer value quote or a guaranteed transfer value, you’ll need to request a transfer value statement and the forms to allow the transfer to take place from the Horizon Pension Team. You can do this via our online member portal.

To help you understand the timelines associated with transferring out of the Scheme, once you’ve submitted your request, please see the timeline here.

A request for a transfer statement will normally take around five working days. It may take longer if your pension is more complicated to calculate. You can only request one transfer statement free of charge in any 12-month period. A charge of £300+VAT per statement is applied for any additional requests.

Please be aware of the following when requesting a transfer value quote: The transfer value of your pension is only guaranteed for three months from the date it’s calculated. The current transfer value could be higher or lower than any estimates you may have received in the past and any future estimates may also be different.

Payment of the transfer value will be made directly to your chosen pension arrangement.

If you have any Additional Voluntary Contributions (AVCs), this is a separate benefit category and you would be expected to transfer your AVCs at the same time as your main Scheme benefits. Once you transfer both you’ll no longer have any entitlement to benefits in the Scheme.

The Trustee is required by law to stop any transfer that it thinks is suspicious and may delay or refuse transfers if there are doubts about the legitimacy of the receiving scheme or the circumstances of the request.

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