In this article we cover:
- About transferring pensions to Nutmeg
- Transferring a pension if you already have a Nutmeg pension
- Starting a Nutmeg pension with a transfer
- Transferring part of a pension
- The pension transfer process
About transferring pensions to Nutmeg
Starting the transfer of a pension to Nutmeg is easy:
- It takes just minutes online to start your transfer; most can be completed electronically within 10 working days. If not, we'll guide you through any extra paperwork that may be required.
- You can transfer in as many pensions as you like and initiate several transfers at a time.
- We'll arrange the transfers from start to finish and keep you informed along the way.
- You can transfer most personal pensions to a Nutmeg pension, such as a SIPP or an occupational scheme that you may have left from previous employment.
- When the transfers arrive we’ll consolidate them into a single pension pot to make it easy for you to keep track of how much you have. We’ll update the value of your pension daily and you can check in any time.
What you’ll need:
- To be a UK resident aged between 18 and 75.
- A recent statement to hand: we’ll need the provider name, your plan number, and the recent pension value.
Your National Insurance Number.
- You’ll need to start your Nutmeg pension with at least £5,000. The £5,000 figure can be made up through a pension transfer(s) and/or personal or employer contributions, or a mix of all three.
Remember, as with all investing, your capital is at risk. The value of your pension can fall as well as rise and you may get back less than you invest. Your eligibility to invest in a pension depends on personal circumstances and tax rules may change in the future. If you need help with pensions, please seek independent financial advice. And don’t forget, that you can't normally withdraw money from a personal pension until you're 55.
Transferring a pension if you already have a Nutmeg pension
You can transfer pensions to your existing Nutmeg pension account by selecting the ‘Options’ button on your pension pot, and then ‘Transfer pension’. Or go directly to transfer a pension.
We’ll need the provider name, the plan number, and the value of the pension and date of the valuation.
For what happens next, see the pension transfer process.
Starting a Nutmeg pension with a transfer
If you don’t have a Nutmeg account
If you already have a Nutmeg account
If you’re under 75 and of an eligible nationality, then you’ll see an option to Start or transfer a pension on the left hand side of your homepage once you’ve signed in, or underneath your existing Nutmeg pots.
Transferring your pensions
We’ll show you an informal illustration of how your pension might perform and the portfolio we’ll build and manage for you by answering the first set of questions. To do this, we need to know your age, gender — as women’s life expectancy is typically longer than men's, gender affects the estimation of the pension value you may receive — and when you plan to start withdrawing from your pension.
You can then input any contributions you are making including the estimated value of the pensions you are transferring. You can also set up employer contributions to your pension at this time if you want to. We’ll use these to build the illustration.
Because the minimum amount for our pension is £5,000, you may need to make a one-off personal or employer contribution to make up the starting amount to £5,000.
You can then explore the effect of different portfolio risk levels on the potential growth of your pension. Don’t worry, you can make changes to your pension risk level later if you’re unsure.
You’ll be able to see a portfolio projection, the investments we will buy for you, and how portfolios similar to these have performed in the past.
Remember that past performance is not a reliable indicator of future performance and any projection or illustration is intended as an aid to decision-making, not as a guarantee.
After the initial illustration we’ll gather the rest of the details of your transfer and the information we need to set up the pension. These include:
- You attitude to risk and your personal details, if you’re setting up a Nutmeg account for the first time
- Your beneficiaries for your pension and employment status
- Pension protection and enhancement factors if you have them
- Details of the pensions that you are transferring
- Any personal one-off or monthly contributions
- Any employer contributions
You’ll then have the chance to review all you entered and see read your formal pension illustration before completing the setup.
For the pensions you are transferring we’ll need: the provider name, the plan number and the pension value with the date of the valuation. A recent statement will usually have all these details.
For what happens after submitting see the pension transfer process.
Transferring part of a pension
You can also transfer only part of a pension. When you’re inputting the details of the pension transfer, select ‘Only transfer part of this pension’. In the valuation and date boxes enter the amount of the pension that you’d like to transfer and today’s date. You can then proceed with the transfer as normal.
If you have any special instructions for the transfer, please send us a Nutmail after you submit the transfer.
The pension transfer process
Pension transfers can be more complex than ISA transfers so they may take a little longer to be completed. It’s usually 10 working days if transferred electronically but up to 6 weeks or more if transferred manually. Your investments are unlikely to be out of the market for more than a few days, however.
Nutmeg promises to transfer your pension as quickly and smoothly as possible. We’ll always try to transfer your pension electronically as this is usually quicker than a manual transfer and we usually only need one instruction from you.
We’ll also do our best to keep you updated on the status of your transfer. If you don’t hear from us for a while, don’t worry, you can be confident we’re actively tracking the transfer of your pension. If it’s still in the hands of your current pension provider we’ll chase them every 7 days.
Electronic pension transfers
We’ll process your transfer as quickly and smoothly as we can. We use the industry-leading system provided by Origo Options and can usually complete these within 10 working days. Apart from your initial instruction we usually won’t need you to fill in any forms or provide any other documents to complete the transfer.
Unfortunately, not all scheme providers allow electronic transfers and if this is the case we’ll need to ask you to complete two additional forms.
Generally, manual transfers follow this process:
- We’ll send you a Transfer Authority Form which you’ll need to complete and return to us. This gives us the authority to discuss your scheme with your existing provider.
- Once this has been accepted by your existing provider, they’ll issue Discharge Forms either directly to you, or through us.
- If they issue to us, we’ll only send you the part that you need to complete. You’ll then need to return this to us. If the Discharge Forms are sent to you, simply complete the ‘Member Details’ section and return the documents to us as we’ll complete the rest of these forms for you.
- We’ll then send all the paperwork to your ceding scheme. If they accept this, they’ll start the disinvestment and send the cash proceeds to us, once available.
If any of the details we hold for you differ to your ceding scheme provider, they’re likely to reject the transfer. We therefore strongly advise you to contact them first before you start the transfer to check these details. Common causes of delays to pension transfers include: changes of address and surnames, incorrect National Insurance Numbers and incorrect pension plan numbers.
Unfortunately, we cannot accept any pension policies which carry a ‘Defined Benefit’ element, e.g. final salary pensions, pensions with a guaranteed income, a guaranteed retirement age or protected tax-free cash, or any pension from which you have already started drawing income — a pension that has been crystallised and put into drawdown.