Cathedral Financial Consultants Limited, advising clients since 2003.

Transferring My Pension

Discover more about pension transfers in Ireland, including your available options, the ideal time to transfer, and key factors to consider when making a switch, such as special benefits and exit clauses.

What’s in this guide?

What is a pension transfer?

What kind of pensions can be transferred?

Why Consider Pension Transfer?

Risks Involved in Pension Transfers

Steps to Follow When Transferring Pensions

What are the costs associated with pension transfers?

Should I transfer my workplace pension when I leave a job?

Useful Links / Documents

Common Questions about Transferring your Pension in Ireland (FAQ)

Relevant articles

How to find old pensions

Tracing lost pensions

Transferring your UK pension to Ireland

Personal pensions

Occupational pensions

What is a pension transfer?

A pension transfer involves shifting your pension fund from your current financial provider to a new one. You may opt to move from a defined benefit plan to a defined contribution plan, a personal pension, or a Personal Retirement Savings Account (PRSA).

This decision may arise due to a career change, the closure of your existing pension scheme, or the need to consolidate multiple pensions accumulated over time.

If you’re unsure whether transferring your pension is the right choice, consult one of our Qualified Financial Advisors today. Our experts will provide the right guidance and advice, ensuring you don’t lose out on valuable special benefits or low fees associated with your current pension.

What kind of pensions can be transferred?

The level of risk involved in transferring your pension depends on several personal factors. The first step is to identify your current pension type and evaluate the available transfer options.

Types of Pensions and Transfer Considerations

1. Defined Contribution (DC) Pension

The most common type of pension, funded by contributions from both you and your employer.
Generally, DC pensions can be transferred at any time to:
- Another contributory pension
- A Personal Retirement Savings Account (PRSA)
- A Personal Pension Plan (PPP)

2. Defined Benefit (DB) Pension

Offers a guaranteed payout upon retirement.
Transfers are more complex as they may result in the loss of long-term benefits.
Some employers provide Enhanced Transfer Values (ETVs) to encourage pension transfers.
Seeking independent financial advice is essential to assess the pros and cons.

Want to learn more about DB pension transfers? Speak with one of our Qualified Financial Advisors today.

3. Personal Retirement Savings Account (PRSA)

A flexible pension option suited for those transitioning from employment to self-employment.
Can accept both lump-sum payments and monthly contributions.
Ideal for individuals with a fluctuating income, as payments can be started or stopped as needed.

4. Personal Pension Plan (PPP)

Suitable for newly self-employed individuals looking to transfer a company pension.
Allows both personal and company contributions.
Tax relief available at 20% or 40%, depending on income levels.
Includes various fund options to match your risk tolerance.

Key Takeaways

Understanding your pension type and exploring transfer options is crucial before making a decision. Consulting a financial advisor can help you weigh the risks and benefits to ensure your pension aligns with your long-term financial goals.

Why Consider a Pension Transfer?

Reasons to Transfer Your Pension Between Providers

Consolidation – If you’ve worked for multiple employers, you may have accumulated several pensions. Combining them into one plan can make financial management easier.
Improved Benefits – A new provider might offer better benefits, such as lower fees, more investment options, or greater flexibility in accessing your pension.
Lower Fees – If your current pension has high management fees, switching providers could help reduce costs and increase your retirement savings over time.
Returning Home – If you previously worked abroad, transferring your pension to your home country can simplify management and align with local regulations.
Plan Closure – If your employer or pension provider is closing your current pension scheme, transferring your funds ensures continued access and investment growth.
Relocating Abroad – If you’re moving to another country, you may need to transfer your pension to comply with the new country’s pension system and taxation laws.

Considering a pension transfer? Speak with a financial advisor to explore your options and find the best solution for your retirement goals.

Risks Involved in Pension Transfers

Key Considerations Before Transferring Your Pension

Exit Charges & Penalties
- Many pension schemes include exit charges to discourage transfers.
- Carefully review your pension terms to understand potential penalties, as they may be higher than expected.
Guaranteed Annuities or Rates
- Some pensions offer guaranteed annuity rates, which may be lower with a new provider.
- These benefits can be difficult to spot in pension documentation, so consulting an independent advisor is recommended.
Cooling-Off Period
- Most providers offer a cooling-off period, allowing you to reconsider your decision after initiating a transfer.
- However, confirm if you can return to your previous provider with the same benefits, as some schemes may not reinstate them.
Provider Bonuses
- Some providers offer bonuses at pay-out to retain pension holders.
- Weigh the benefits of transferring against potential bonuses you might forfeit.
Tax Implications
- Different pension schemes have varying tax rules that may impact your pension pot at retirement.
- Seek financial advice to fully understand the tax consequences before transferring.
Risk Transfer
- If moving from a defined benefit pension to a personal plan, be aware that the risk shifts entirely to you instead of being managed by your employer.
Proximity to Retirement
- If you’re close to retirement, the potential benefits of transferring may be limited.
- Moving pensions late in your career can expose you to unnecessary risks, making it essential to evaluate whether a transfer is worthwhile.

Make an Informed Decision

Carefully assessing these factors with a financial advisor will help ensure that transferring your pension aligns with your long-term retirement goals.

Steps to Follow When Transferring Pensions

The Process of Moving Your Pension

Transferring your pension involves several administrative steps, which MyPension can assist with. However, staying informed throughout the process is essential.

1. Determine Your Transfer Value

The first step is to obtain your transfer value, which represents the total amount accumulated in your pension pot. Your current provider will supply this information through a transfer value statement, which typically includes:

The transfer value – The total pension amount available for transfer.
Details of accrued benefits – Any special guarantees or perks associated with your pension.
Potential transfer costs – Exit fees, charges, or penalties (if applicable).
Technical transfer details – Information required by the new provider to process the transfer.

2. Application Process

Your new provider will require you to complete an application to initiate the transfer. This typically involves filling out forms, which can often be done online, though some providers may require physical documents.

3. Permissions and Forms

Your new provider will need permission to contact your current provider to begin the transfer process.
Your current provider may require additional forms and will inform you of any applicable charges or penalties for transferring out of their scheme.

4. Transfer Timeline

Once all paperwork is submitted, the transfer process usually takes around six weeks, though delays can occur depending on how efficiently both providers handle the exchange of information.

5. Investment Continuity

During the transfer, your pension remains invested, ensuring no loss of pension growth or accumulation during the transition period.

By familiarising yourself with these steps and coordinating effectively with both your current and new pension providers, you can ensure a smooth and informed transfer process.

Our team of Qualified Financial Advisors and Pension Administrators are here to guide and assist you at every stage of the transfer.

Considering a pension transfer? Speak with one of our Financial Advisors today to determine if transferring your pension is the right choice for you.

What are the costs associated with pension transfers?

Transferring your pension may involve costs, but the potential benefits of a new provider could outweigh these expenses. To make an informed decision, it’s essential to evaluate exit costs from your current provider.

Key Costs to Consider:

Exit Fees – Some providers charge a penalty for transferring, often calculated as a percentage of your total pension value.
New Plan Fees – Your new provider may have administrative or management fees that should be assessed before making the switch.

Get Expert Guidance

A Financial Advisor will help you:
✔ Understand the total costs involved in transferring your pension.
✔ Compare new plan fees to determine if the switch is financially beneficial.
✔ Provide personalised advice to ensure you make the best decision for your future.

Should I transfer my workplace pension when I leave a job?

If you’re thinking about leaving your job, you might be wondering what happens to your pension. The options available to you will depend on the type of pension plan you have, which generally falls into one of two categories:

1. Defined Contribution (DC) Pension

Most private company pensions fall under this category.
Your pension is based on how much you and your employer contribute, as well as investment performance.
You may have the option to:
- Leave your pension with your current provider.
- Transfer it to a new employer’s scheme.
- Move it to a Personal Retirement Savings Account (PRSA) or a Personal Pension Plan (PPP).

2. Defined Benefit (DB) Pension

Typically found in civil service and public sector employment.
Provides a guaranteed pension payout upon retirement, based on salary and years of service.
Transferring a DB pension is more complex, and you should seek financial advice before making any decisions.

Defined Contribution (DC) Plans:

Leave It as Is
- You can keep your pension with your former employer’s scheme, where it will remain invested and continue to grow.
Transfer to a New Employer’s Scheme
- If your new employer offers a pension plan, you may have the option to transfer your funds into their scheme, ensuring continuity in your retirement savings.
Transfer to a Personal Pension
- Moving your funds into a Personal Pension Plan (PPP) or Personal Retirement Savings Account (PRSA) gives you greater control over your investment choices.
Cash Out
- Depending on your age and plan rules, you may be able to withdraw your pension as a lump sum.
- Be aware that this option could lead to tax implications and penalties, which should be considered before making a decision.

Defined Benefits (DB) Plans:

If you have a Defined Benefit (DB) pension, your choices after leaving an employer are more structured:
- Deferred Benefits
  - Your pension remains in the current scheme, and you will receive benefits at retirement age based on the plan’s formula.
  - The final payout depends on factors such as your salary and years of service.
  - Your benefits are preserved, meaning they continue to be adjusted for inflation or any other plan provisions.
- Transfer Value
  - You may have the option to transfer the value of your DB pension into:
    - A new employer’s pension scheme (if they accept DB transfers).
    - A Personal Retirement Savings Account (PRSA) or a Personal Pension Plan (PPP) for more control over investments.
  - Caution: Transferring a DB pension means giving up guaranteed benefits, so independent financial advice is essential before making a decision.

Next Steps for Managing Your Pension Transfer

Assess Your Options
- Compare the pros and cons of each available option based on your personal circumstances and future retirement goals.
- Consider factors such as investment control, fees, benefits, and tax implications.
Seek Professional Advice
- Consulting a Qualified Financial Advisor ensures that you make an informed decision tailored to your specific financial situation.
- They can help you understand complex pension terms and guide you toward the best course of action.
Review Terms and Conditions
- Carefully check for fees, penalties, and any exit charges that might apply.
- Ensure you understand how transferring or retaining your pension may impact your long-term retirement benefits.

Useful Links / Documents

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Common Questions about Transferring your Pension in Ireland (FAQ)

Is it a good idea to bring all my pension pots together?

Many people believe that combining pension pots makes them easier to manage. However, using our MyPension app, you can efficiently oversee all your pensions in one place without needing to merge them.

Why We Don’t Typically Recommend Combining All Pensions

Diversification Matters – Keeping your pensions in separate pots allows for better risk management and exposure to varied investment strategies.
Maintaining Benefits – Some pension schemes offer special benefits, guarantees, or lower fees that could be lost if transferred into a single plan.
Flexibility – Different pension plans have unique tax advantages, investment options, and withdrawal rules, which can be beneficial to keep.

How MyPension Helps You Manage Your Pensions Without Merging

We assess your individual pension pots and personal circumstances to create a well-structured portfolio.
The MyPension platform allows you to monitor and manage all your pensions in one place without unnecessary consolidation.
This approach provides reduced risk while maintaining the convenience of managing all your pensions in one accessible platform.

Will I lose any valuable pension benefits?

Why You Should Consult a Financial Advisor Before Transferring Your Pension

Without fully understanding the benefits, costs, and potential trade-offs of a pension transfer, you risk losing valuable advantages—such as lower fees, guaranteed benefits, or strong investment performance—by moving to a less favorable plan.

How Our Financial Advisors Help You Make the Right Decision

✔ Compare Pension Benefits – We thoroughly assess your current pension plan to ensure you don’t transfer a pension with superior benefits into one with less value.

✔ Evaluate Fees & Costs – We analyze exit fees, ongoing management costs, and the fee structure of new plans to prevent unexpected financial losses.

✔ Assess Performance & Risk – Our advisors review the historical performance of your pension, ensuring that any move aligns with your attitude to risk and retirement goals.

✔ Provide a Personalised Recommendation – Rather than making a blind transfer, we compare the perceived value of different pension options and offer a well-informed, tailored recommendation.

What investment choices are available if I move my pension?

Pension Transfer Options & Next Steps

Defined Contribution (DC) Plans

Leave It as Is
- Your pension remains invested in your former employer’s scheme, continuing to grow.
Transfer to a New Employer’s Scheme
- If your new employer offers a pension, you may be able to move your funds into their plan for seamless retirement savings.
Transfer to a Personal Pension
- Moving your funds to a Personal Pension Plan (PPP) or Personal Retirement Savings Account (PRSA) gives you full control over investments and withdrawals.
Cash Out
- Depending on your plan rules and age, you might be able to withdraw your pension as a lump sum.
- This option could lead to tax implications and penalties, so professional advice is recommended.

Defined Benefit (DB) Plans

Deferred Benefits
- Your pension remains in the current scheme and will be paid out at retirement age, based on the plan’s formula.
Transfer Value
- You may be able to transfer your pension value to a new employer’s scheme or a personal pension plan.
- Caution: Transferring a DB pension means giving up guaranteed benefits, so independent financial advice is essential.

Next Steps

✅ Assess Your Options – Weigh the pros and cons based on your personal financial goals.
✅ Seek Professional Advice – A Qualified Financial Advisor can help you make an informed decision.
✅ Review Terms & Conditions – Check for fees, penalties, and long-term impacts on your retirement benefits.

How to transfer an overseas pension to Ireland?

Pension Transfer Options for Irish Residents

Most Irish residents under 70 can transfer their pensions, subject to certain restrictions. If you have worked in the UK, you likely have a pension pot there. If you plan to move back to Ireland or have already done so, you can transfer your UK pension to Ireland through a Qualified Recognised Overseas Pension Scheme (QROPS) Buy Out Bond. This provides greater control over your investment choices before and during retirement.

How can I transfer old pensions?

The Pension Transfer Process: What to Expect

Transferring your pension requires careful planning and administration, but MyPension is here to assist you at every step. Staying fully informed ensures a smooth transition and helps you avoid unnecessary delays or unexpected costs.

Step 1: Determine Your Transfer Value

The first step is to understand the value of your pension and any associated costs. Your current pension provider will provide a document outlining:
✔ Your Transfer Value – The total pension amount you can transfer.
✔ Benefits Accrued – Any special features, such as guaranteed annuity rates.
✔ Potential Transfer Costs – Exit fees, penalties, or administrative charges.
✔ Technical Transfer Details – Required information for your new provider.

Step 2: Complete the Application Process

Your new provider will have an application process to begin the transfer.
This usually involves completing transfer forms, which may be submitted online or in physical form, depending on the provider’s requirements.

Step 3: Grant Permissions & Submit Forms

You will need to authorize your new provider to contact your current pension provider to initiate the transfer.
Your current provider may also require additional paperwork and will notify you of any applicable transfer fees or penalties.

Step 4: Transfer Timeline

Once all documents are submitted, the transfer process typically takes around six weeks, though it may take longer depending on the responsiveness of both providers.
The duration depends on:
✔ The efficiency of the current and new providers.
✔ How quickly required information is exchanged.

Step 5: Investment Continuity

During the transfer period, your pension remains invested, ensuring no loss of pension value.
Your funds continue to grow or accumulate, so you won’t miss out on investment returns during the transition.

Are pension transfers taxable?

Pension Transfers & Tax Implications in Ireland

Transferring your pension from one recognised provider to another does not affect its tax status. However, transferring to a non-recognised provider or withdrawing funds before the transfer may result in unauthorised tax charges.

Key Points on Pension Transfers & Tax

✔ Authorised Transfers – Moving your pension between recognised providers ensures that your pension retains its tax-efficient status.

❌ Unauthorised Transfers –

Transferring to a non-recognised provider may trigger tax penalties.
Withdrawing a lump sum before the transfer may result in it being taxed as unauthorised income.

Taxation on Pension Lump Sums in Ireland

💰 Tax-Free Allowance:

You can withdraw up to €200,000 tax-free over your lifetime.

💰 Tax on Lump Sums Over €200,000:

€200,000 – €500,000 → Taxed at 20%.
Over €500,000 → Taxed at your marginal tax rate.

Final Thoughts

Ensuring your pension transfer is authorised protects you from unnecessary tax charges. Additionally, understanding tax-free lump sum limits helps in planning your retirement finances effectively.

Can I transfer my pension myself?

Pension Transfers & Tax Status

✔ Yes, you can transfer your pension from one recognised provider to another without affecting its tax status.

❌ However, if you transfer your pension to a non-recognised provider or withdraw a lump sum before the transfer, it will be classified as an unauthorised transfer and subject to tax penalties.

To ensure a tax-efficient transfer, always confirm that your new provider is recognised and compliant with Irish pension regulations. If in doubt, consult a Qualified Financial Advisor for expert guidance.

How much does it cost to transfer a pension?

The costs of transferring your pension vary depending on the plan, but all fees will be outlined for you before proceeding. Your Financial Advisor will compare the costs of your current pension with those of the proposed new plan, helping you assess whether the transfer is beneficial.

Key Costs to Consider

✔ Exit Fees – Some providers charge a penalty for transferring, often calculated as a percentage of your pension value.

✔ Management Fees – New pension plans may have ongoing fees, which should be compared against your current plan.

✔ Potential Benefits vs. Costs – While there may be fees, the advantages of a new provider (lower fees, better investment options, or greater flexibility) may outweigh the costs.

How MyPension Can Help

Your Financial Advisor will break down all costs and guide you in making an informed decision.
You’ll receive personalised advice to ensure that a transfer benefits your long-term retirement savings.

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