Transferring pensions out of the UK

[Wowbagger]

A question from my antipodean daughter.

She has a Chap in tow and said Chap and she are thinking of buying a house. She has been in Melbourne for more than 3 years, is applying or permanent residency and has been asking me if I knew what she should do to withdraw the pension she accrued with Cancer Research UK when she worked for them.

Given that YACF is the fount of all knowledge, I felt sure that there will be someone who knows about these things. 

[T42]

I worked in group pensions for six months 50 years ago, so my knowledge is possibly a bit dated; but back then she could have got a Transfer Value, based on paid-up pension to her date of leaving. She could then put that money into any other pension scheme. I'm not too sure about receiving it as a lump sum, though. My own inclination would be to leave it in pensions, but I've always leant to the safer side.

[citoyen]

IANAFA but my understanding is there are big penalties for withdrawing pensions early so she’s probably best off leaving it where it is for now unless she’s desperate for the money.

And presumably she’s a long way off the pension maturing so who knows what may change about her circumstances before then?

Tbh, I don’t really know much about this subject but it’s something that interests me because the way this country is going I’m seriously considering shipping out and I’m keen to know what will happen to the desultory sums I have stashed in various workplace pensions... for now, though, I’m just leaving them be.

[CrazyEnglishTriathlete]

You can transfer pensions, the paperwork will have a transfer value, but its best to check with an expert the nature of the pensions.  I had a look at consolidating some of mine - and it turned out that one of the old ones had a Guaranteed Annuity - which will pay more than twice the going rate of the average annuity - I would have lost out substantially if I had transferred that (which would have lost the guaranteed annuity).  Similarly, if you have the good fortune (which I don't) to have a defined benefit (final salary) scheme, then it is often better to keep the pension scheme and not transfer - but again the good and the bad are in the fine print.

[Canardly]

Best do it quickly before the UK remembers exhange controls.