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Can I switch to another ROPS?

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So, you transferred your UK pension years ago and now you’d like to move your funds to another pension scheme.

It’s a question that our Pension Transfers advisers hear quite often, and just like any other financial decisions there are pros and cons to consider, depending on your circumstances.

As always, we’re here to help you make a well-informed choice about the future, and welcome you to contact us if you’d like to explore your options. In the meantime, here’s a summary of some key things to think about.

Reasons to switch to an alternative pension scheme

Based on your situation, some factors may weigh more than others, but generally speaking, here are some reasons to consider a switch to another ROPS.

  • Alignment to risk profile

Has your risk profile changed since you transferred your UK pension? If so, you may like to check that your current ROPS scheme is still aligned with your needs and goals. There may be another one that’s more suitable for you in terms of fund choice and selection, and if so, our advisers can help you research the market.

  • Flexibility

Looking for diversified options? Diversification is a common strategy for managing and minimising risk across your investment portfolio. Once again, we can help you assess the range of risk-return profiles provided by your scheme, and see what other ROPS schemes offer in this space.

  • Ongoing costs

When investing for the future every dollar counts, so it’s important to know your ROPS fees. Keep in mind that higher fees are not a guarantee of higher returns. Also, while they are important, fees are not a primary factor in making an investment decision. The key thing is to find a ROPS with a good balance between fees and performance.

  • Support from the provider

If you’re not satisfied with the ongoing support and communication offered by your ROPS provider, it may be worth looking elsewhere. Again, there are many pros and cons to ponder before transferring your savings to another pension scheme, so don’t hesitate to contact us: we can answer any questions you may have.

Potential downsides to consider

While in some cases switching to another ROPS scheme can benefit your financial position, it does come with its own potential downsides.

Exit fees are a prime example. Depending on the ROPS scheme you’re invested in, you may incur an exit fee for leaving the scheme, and even switch fees for moving your savings between funds within the same ROPS. Since these fees are often high, it’s something important to think about.

Also, your current scheme might have more favourable rules and regulations than the alternative, and tax liability may arise, depending on your tax jurisdiction at the time of the transfer.

Lastly, there are likely to be other associated costs to consider, like the entry fee of your next ROPS, or adviser fees if you seek expert help for your transfer (which is a recommended approach).

We’re here to help

As you can see, when your UK pension is concerned, there’s a lot to consider. That’s why working with a UK pension expert is a good idea.

At Pension Transfers, over the past 20-plus years, we have helped thousands of clients make informed decisions about their UK pension transfer and future financial needs. Like to know more? Click here to contact us or give us a call on 0800 UK 11 NZ.


Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Past fund performance is no guarantee of future returns.