How to switch drawdown provider safely

Before you start: check what you could lose

The steps, and how long they take

1. Get the facts about your current plan. Its value, whether any of it is already in drawdown, any exit fee, and the special features above. If you already take an income, ask how payments will continue while the money moves.
2. Compare where you might move to. Look at the charges for the way you take money out, not just the platform fee. Our comparison and checklist for choosing a provider cover what to look for.
3. Open the new plan and ask the new provider to transfer your pension in. You usually apply through the new provider, which contacts the old one. You do not normally have to cash anything in yourself.
4. Answer the transfer checks. The provider you are leaving must check the receiving scheme for signs of a scam before it pays. It may ask you questions, or ask you to take free guidance from MoneyHelper first (MoneyHelper).
5. Check the money has arrived and is invested as you asked, then set up or restart your income and update your nominations.

A straightforward transfer between online platforms often completes within a few weeks; older policies, in-specie transfers and plans with special features can take longer. A drawdown fund has to be transferred in full, not in part (HMRC PTM104000). Money you have not yet taken benefits from can usually be moved separately.

If you are in capped drawdown, the new scheme will keep it as capped drawdown unless you ask for it to become flexi-access drawdown. Converting means the Money Purchase Annual Allowance applies from your first payment (HMRC PTM104000).

In specie or cash?

A transfer in specie moves your investments without selling them, so you stay invested throughout. The new provider has to be able to hold the same investments, and funds sometimes move into a different share class. It can take longer.

A cash transfer sells your investments, moves the money and reinvests it at the other end. It is accepted everywhere, but you are out of the market for the days or weeks the transfer takes, and markets can rise or fall in that time. Some people choose in specie for that reason; others prefer cash for speed or to change investments anyway.

Exit fees on the platforms we compare

Most platforms we track publish no charge for transferring out. Where a provider has not published a figure, or we have not yet confirmed it, the table says so rather than showing £0.

Nominations and paperwork

• Your expression of wish does not move with the money. Complete a new one with the new provider.
• Keep copies of your last statement, the transfer confirmation and any letter about special features.
• If you have taken tax-free cash or taxable income, the new provider will need to know, because the Lump Sum Allowance and Money Purchase Annual Allowance follow you, not the plan.

Avoiding pension scams

• Treat any unexpected call, text, email or social media message about your pension as a warning sign, as well as pressure to act quickly or promises of unusually high returns.
• Check any firm on the FCA Register and the FCA's ScamSmart Warning List before you deal with it.
• Be wary of anyone offering to unlock a pension before 55 (57 from April 2028) other than on ill-health grounds. That can mean HMRC tax charges of up to 55% on top of any loss (GOV.UK pension schemes rates).

Free help

Pension Wise gives free, impartial guidance on your options if you are 50 or over. For a personal recommendation, especially where guarantees are involved, speak to a regulated financial adviser. Our longer article on switching a pension that is already in drawdown covers more detail.