What is transferring?
You can choose to transfer your pension to another employer's pension scheme or to a personal pension at any time before you retire.
This is a big decision, once you transfer out you lose all the guarantees and benefits you have in the Tesco Pension Scheme and this cannot be reversed. Before you make this decision, take a look at the 'Ways to take your pension' section so you understand your options and the benefits you'll be giving up if you transfer out.
Before you transfer out you will need to get a transfer value quotation and we recommend you get financial guidance and advice to make sure you understand the risks and benefits.
Take a look at the table below that highlights the differences between options:
Getting financial advice.
If your transfer value is over £30,000 you must take financial advice, from a regulated financial advisor, before you’ll be allowed to transfer to a Defined Contribution (DC) pension arrangement. This requirement is a Scheme rule and UK law, it is there to protect you, and to make sure you’re aware of all the pros and cons of transferring before making a decision.
Your financial advisor will begin with the assumption that it is not in your best interests to transfer, so (depending on your personal circumstances) your chosen financial adviser may recommend that you DO NOT transfer your pension out of the Scheme, if they consider that transferring is not the right thing for you to do even if you want to. You will still have to pay for the financial advice, even if their recommendation is that you do not proceed with a transfer.
If your transfer value is under £30,000 we recommend you take financial advice but it is not a requirement.
You can find additional information that can help you understand your options and what you could be giving up here. You should also be aware of potential pension scams and only transfer out to a reputable provider.
Finding a financial adviser
We recommend you speak to a financial adviser that is authorised and regulated by the Financial Conduct Authority (FCA). You can find an FCA-regulated adviser using this government approved website.
Origen Financial Services
To help you make the right decision for you, we’ve reviewed some of the biggest financial advisers and selected one that we believe is suitable to advise on the Scheme. Origen Financial Services have dedicated resources to provide advice, especially if you are considering whether to transfer out.
We’ve also negotiated a competitive rate for our members, which is likely to be cheaper than the cost if you find your own financial adviser. Of course, you’re free to use any other financial adviser in the market if you want to, but you should make sure that they’re authorised and regulated by the FCA. Whichever financial adviser you choose, you’ll need to enter into a separate agreement with them.
What is needed to get financial advice?
You’ll need to provide them with the following information:
- Your current finances (for example, debts, income, outgoings, savings)
- Other retirement savings and pensions you may have
- Your health and lifestyle
- Your plans for retirement
- Your dependants
If you use your own adviser, they should give you a statement to pass to the Trustees which confirms:
- That advice has been provided which was specific to the option that you have chosen
- That the adviser is authorised to give regulated advice
- The reference number of the adviser or the firm of advisers
- Your name, and the full name of the plan
- Before paying your transfer value the Trustees will check that they are satisfied with the information provided
If you take advice from Origen they will be able to provide this evidence.
You can find suggested questions to ask your adviser on the FCA website.
