Is royal mail pension transferrable
Royal Mail pension schemes are generally not transferable to other pension schemes, but there are some exceptions and considerations to be aware of:
- Transfer to another Royal Mail pension scheme: If you have a Royal Mail pension scheme and you move to a different role within Royal Mail, you may be able to transfer your pension benefits to the new scheme. This is known as a "section 67 transfer".
- Transfer to a personal pension scheme: You may be able to transfer your Royal Mail pension benefits to a personal pension scheme, such as a Self-Invested Personal Pension (SIPP) or a Stakeholder Pension. However, this will depend on the specific rules of your pension scheme and the type of pension you have.
- Transfer to a defined contribution scheme: If you have a defined contribution pension scheme with Royal Mail, such as the Royal Mail Group Personal Pension Scheme, you may be able to transfer your benefits to a defined contribution scheme with another employer.
- Transfer to a defined benefit scheme: If you have a defined benefit pension scheme with Royal Mail, such as the Royal Mail Pension Scheme, it is generally not possible to transfer your benefits to another defined benefit scheme.
Before transferring your Royal Mail pension benefits, it's essential to consider the following:
- Tax implications: Transferring your pension benefits may have tax implications, such as income tax or capital gains tax.
- Loss of guaranteed benefits: Transferring your pension benefits may result in a loss of guaranteed benefits, such as a guaranteed income for life.
- Investment risk: If you transfer your pension benefits to a personal pension scheme, you will be taking on investment risk, which means that the value of your pension pot may go up or down depending on the performance of your investments.
- Fees and charges: Transferring your pension benefits may involve fees and charges, which could reduce the value of your pension pot.
It's recommended that you seek professional advice from a financial advisor or a pension expert before making any decisions about transferring your Royal Mail pension benefits.