Transferring your pension to a SIPP: a complete guide

The short answer: You can usually move an old pension into a SIPP, as long as both schemes allow it. A transfer often takes 2 to 6 weeks. Check first for exit fees and guarantees you'd lose. Final salary pensions worth over £30,000 need paid advice. In 2026/27, tax relief still adds 20% to what you pay in.

Can I transfer my old pension to a SIPP?

Usually, yes. GOV.UK says you can move your pension pot to another registered UK pension scheme, and a SIPP (self-invested personal pension) is one of those. Moving it anywhere else counts as an unauthorised payment, and you'd pay tax on it.

A SIPP is a personal pension that lets you control the specific investments in your pot. You don't have to pick them yourself, though. Most SIPP providers will manage your money for you unless you'd rather choose.

Two checks come before anything else:

• your old scheme lets you transfer some or all of your pot

• the SIPP will accept the transfer

You can usually transfer at any point, unless the scheme rules say otherwise. You also don't have to bring every pension together. You can pick which ones to move and which to leave.

Capital at risk. The value of your pension can go down as well as up, and you may get back less than you pay in.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

Which pensions can you move, and which need advice?

It depends mostly on the type of pension. A defined contribution pension is a pot that depends on what's paid in and how it's invested. A defined benefit pension (final salary or career average) promises you a set income. Not sure which you've got? It happens a lot, and our guide to the different pension types can help, or ask your provider.

Based on MoneyHelper's guides to defined contribution transfers and defined benefit transfers, checked 6 October 2026. Your scheme's own rules decide what applies to you.

Some schemes also only accept transfers in during the first year after you join, or not at all.

Is it worth transferring an old pension?

It can be, if you come out ahead once you've counted what you'd give up. A transfer usually cannot be undone, so it's worth taking your time.

Reasons a move might help:

• Lower fees. Charges have been falling over time, so older schemes may cost more than newer ones.

• More investment choice. A SIPP lets you choose from funds, company shares, bonds and commercial property.

• More ways to take your money, if your old scheme is limited.

• Fewer pots to track. See our beginner's guide to pension consolidation.

Things you could lose:

• exit fees or other penalties for leaving

• guaranteed annuity rates, which may pay a higher income than you'd get elsewhere

• a with-profits bonus paid after a certain date

• a protected pension age that lets you take money earlier

• a right to take more than 25% tax-free, or any fixed or enhanced protection

• employer payments, because many employers won't pay into a different scheme

If you have an employer, MoneyHelper says paying into their workplace pension is usually better than a SIPP, unless you want a second pension alongside it. Our guide to SIPPs vs workplace pensions goes into this.

Small pots need a second look too. If one is worth under £10,000 and you plan to take it all at once, small pot rules might mean it's better left alone.

Example: what fees cost on a £30,000 pot

MoneyHelper gives this example of annual charges on a £30,000 pension:

Annual management charge only. Leaves out fund costs, trading fees, exit fees and investment growth.

Now a made-up example. Sam has 3 old pots worth £10,000 each, all charging 0.75%. That's £225 a year in total. If Sam moved them into one pension charging 0.3%, the yearly charge would be £90. But if one pot had a guaranteed annuity rate, that saving might be small next to what Sam would give up. These figures are made up, for illustration only.

Do I need a financial adviser to transfer my pension?

Sometimes you must have one. If your defined benefit pension is worth over £30,000, you must get financial advice before moving it into a defined contribution scheme like a SIPP. The same applies if a pot guarantees you a retirement income, such as a guaranteed annuity rate, and those benefits are worth more than £30,000.

This advice can often cost thousands of pounds. If your employer offered you an incentive to transfer, your employer should pay for it. Cheaper "abridged" advice can tell you a transfer isn't suitable, but you'd need full advice to go ahead.

The rule is there because the Financial Conduct Authority and the Pensions Regulator say most people are better off keeping a defined benefit pension. Moving one means giving up a guaranteed income for life.

For a simple defined contribution pot, advice isn't required. It can still help if you're unsure. An adviser can tell you if you'd be better off and help spot a scam. You'll usually have to pay for it. Free help is out there as well:

• MoneyHelper gives free, impartial information on transfers.

• Pension Wise offers a free appointment if you're over 50, though it doesn't cover final salary or career average pensions.

Is there a time limit on transferring pensions?

There's no general deadline. You can usually transfer at any point unless the scheme's rules say otherwise. A few limits are worth knowing, though.

• Defined benefit schemes often won't let you transfer within a year of your normal retirement date, or once your pension has started paying.

• Transfer quotes expire. A defined benefit quote (a cash equivalent transfer value) is usually valid for 3 months. Your provider has up to 3 months to send it, and a second quote within 12 months might cost you.

• Values move. A defined contribution transfer value can rise or fall until the money actually moves.

• How long it takes. A transfer often takes 2 to 6 weeks, but your provider has up to 6 months to action your request.

How do you transfer a pension to a SIPP, step by step?

The new provider does most of the legwork, which is handy. The usual order goes like this, based on MoneyHelper's step-by-step guide:

1. Check your pension type. Ask your provider if you're unsure.

2. Ask what you'd lose. Check for exit fees, guarantees, bonuses and a protected pension age.

3. Compare SIPPs. There's no comparison site covering every provider, so you'll need to do your own research. Look at set-up and transfer charges, annual fees, investment charges and fees to change investments.

4. Get a transfer value from your current provider, and ask the new one what it would buy you.

5. Check if you need advice, and book it if so.

6. Ask the SIPP provider to start the transfer. They'll give you a form and contact your old provider for you.

Once it lands, your money usually goes into the new scheme's default fund unless you choose other investments. MoneyHelper notes that low cost SIPPs offer fewer options, and full SIPPs offer more complex ones with higher charges.

Before you pay in, check the provider is on the FCA register. If a SIPP operator fails, the FSCS can usually pay up to £85,000 per person, per firm.

What happens to tax when you transfer?

The key is where the money goes. You can move it to another registered UK pension scheme, like a SIPP. Moving it anywhere else counts as an unauthorised payment, and you'd pay tax on the transfer.

Once your money is in a SIPP, the usual rules apply. Here's how they look in 2026/27:

• Tax relief. Your provider claims 20% basic-rate relief for you, so £100 in your pot costs you £80. Higher and additional rate taxpayers claim the rest through Self Assessment.

• Limits. You get relief on payments up to 100% of your earnings. The annual allowance is £60,000 across all your pensions, and you may carry forward unused allowance from the last 3 tax years. With no earnings, you get relief on up to £2,880. For more, see our guide to pension tax relief, or try our flexible pension calculator.

• Taking money out. You can usually take 25% tax-free, up to £268,275. You'll usually pay Income Tax on the rest.

Two rule changes are on the way, and both affect a SIPP as much as any other pension:

• The earliest age you can take your pension rises from 55 to 57 on 6 April 2028.

• For deaths on or after 6 April 2027, most unused pension funds will count towards your estate for Inheritance Tax. The standard rate is 40% on the part above your threshold. GOV.UK expects most estates to still pay none.

How do you spot a pension transfer scam?

Be wary of anyone who gets in touch out of the blue. A cold call, visit, email or text about your pension is likely a scam. You could lose your money and face a large tax bill.

Scammers do well out of this. Over £17.5 million was lost to pension scams in 2024, an average of £34,000 each. So your old provider must run checks before it moves your money. It can stop a transfer over red flags, such as:

• the request came after a cold call

• the advice came from an unregulated adviser

• you were promised a payment or other incentive to move

For smaller worries, it can pause the transfer until you've had a free Pension Safeguarding Guidance appointment.

If you're worried about a scam, contact Report Fraud on 0300 123 2040 (Monday to Friday, 8am to 8pm) or report it online.

Still got questions?

Can I transfer just part of my pension? Often, yes. GOV.UK says to check your scheme lets you transfer some or all of your pot.

How many SIPPs can I have? As many as you like, but you'll usually pay charges on each one.

Can I transfer my workplace pension while I'm still employed? You may be able to, but you'd probably lose your employer's payments, since many employers won't pay into another scheme. Moving pots from past jobs avoids that.

Can I transfer a pension after 75? You normally can't start or pay into a SIPP after 75, unless you're transferring an existing pension.

Can I move my SIPP to another provider later? Yes. You can transfer your pension pot to a different provider, though fees may apply.

What if something goes wrong with my provider? Complain to them first. They have to respond within 8 weeks. If you're still unhappy, you can go to the Pensions Ombudsman.