How to transfer your pension out of Scottish Widows
Transferring your pension can be a smart move. Whether you're changing jobs, seeking better investment options, or simply wanting to consolidate multiple pensions, understanding the process is key. Here, we’ll walk you through the steps of transferring your pension out of Scottish Widows.
What is a Pension Transfer?
A pension transfer is when you move your pension funds from one provider to another. It's a straightforward process, but there are some important points to consider.
When you transfer, your existing investments are sold, and the proceeds are turned into cash. This cash is then transferred to your new pension provider and reinvested according to your new plan. Thankfully, most pension providers manage this process for you.
Reasons to Transfer Your Pension
You might consider transferring your pension if:
You’re changing job.
Your current pension scheme is closing.
You want a better pension scheme with different investment options or lower fees.
You want to consolidate multiple pensions into one pension account.
Steps to Transfer Your Pension from Scottish Widows
Scottish Widows is a major workplace pension provider, and transferring your pension from them to another provider typically involves these steps:
1. Set Up a New Pension Account
First, choose your new pension provider. If you haven’t done so, set up a personal pension account. Penny is a great option for consolidating your pensions, but there are others that exist also.
2. Initiate a Transfer Request
Ask your new provider to start the transfer process. You’ll need to provide some information about your Scottish Widows pension such as your name and policy number. If you're using Penny, we'll gather this information for you.
3. Process the Request
Your new provider then requests the transfer from Scottish Widows. Scottish Widows use an electronic transfer service called Origo which usually makes the transfer faster. Scottish Widows will receive your pension transfer request via Origo and process it, which usually takes 4-6 weeks.
4. Transfer of Funds
Scottish Widows will transfer the funds to your new pension account. Your new provider will notify you when the transfer is complete. With Penny, you can track the progress in our app and receive automatic updates throughout the process.
5. Completion
Once the transfer is complete, your funds will be in your new personal pension account, and your Scottish Widows pension pot will be closed.
How Penny can help
At Penny, we handle all the hard work. We simplify the entire process, making it fast and digital—no paperwork! Plus, we can transfer all your pensions completely free, regardless of how many you have or their size.
Things to Consider
Before transferring, compare the fees, benefits, and investment options of the new provider. Keep in mind that with pensions, your capital is at risk, and it's important to ensure the investments and features available are suitable for you.
For free, impartial information about transferring your pension, visit MoneyHelper. You can also seek advice from an independent financial adviser, though be aware that there may be a cost for their services.
Transferring your pension can lead to better management and potentially better growth of your retirement savings. With Penny, we make the process as smooth and straightforward as possible.
Ready to get started? Download the Penny app and take control of your pension today.
