5 reasons to switch pension providers to boost your retirement savings (and 3 things to do first)

March 28, 2024

Who is your current pension provider and why did you choose them? Even when you’re making regular pension contributions, it’s not something you think about often. In many cases, your employer chooses your pension provider, and you stick with them, but there are reasons you may want to switch.

Over the years, your pension is likely to become one of your largest assets and it’s important for your long-term plans. A regular review, and switching when necessary, can help you get the most out of your savings.

Here are five reasons you may want to switch pension providers.

1. You want lower pension charges

You’re likely to pay some charges for your pension, which covers the cost of administering your pension and investing. This charge may be a flat fee or a percentage of your pension. If you’re not sure what fees you pay, it’s worth taking a look. Different providers will refer to charges differently, some may say “annual management fee” while others will have a “policy fee”.

The fees you pay directly impact the amount that’s in your pension and, therefore, your retirement. In some cases, it can make sense to switch to a provider with lower fees. This is often true for smaller pensions, particularly if the provider uses flat fees.

2. You want to improve investment performance

As pension contributions are invested, performance is important too. Seeking a pension provider that will deliver a better performance can put you on track for a more comfortable retirement.

There are two questions to ask here. First, have you reviewed the different funds offered by your provider and are you invested in the right one for you? Second, are you taking a long-term view? Remember, you’re investing over decades so you should a long-term outlook rather than focusing on short-term movements.

3. You want to choose from a wider selection of funds

Pension providers will usually have a selection of funds for you to choose from. These will typically reflect different risk profiles, allowing you to control how much risk you take. Some may also offer ESG (environmental, social and governance) or other focused funds for you to choose from. The fund you choose will affect how your pension is invested.

If your current pension provider doesn’t offer a fund that suits you, you may decide to switch. However, most pension providers offer a good selection that is suitable for the majority of pension savers.

4. You want greater control over your investments

If you want greater control over your investments, you may be considering switching to a SIPP (self-invested personal pension). Through a SIPP you can select investments and choose from a greater range of assets.

You have more control, but you also need to take more responsibility for your retirement savings. A SIPP can be useful in some circumstances but it’s not right for everyone. If you’d like to discuss whether a SIPP is the right option for you, please give us a call.

5. You want to make your pensions easier to manage

How many pensions do you have? If you’ve switched jobs a few times, you can end up with several pensions that you’re no longer paying into. This can mean you’re paying more in charges and make it difficult to manage your retirement savings. Consolidating pensions means your savings are all in one place.

3 things to do before you switch your pension

Before you switch your pension provider, there are three things you should do first to make sure it’s the right decision for you.

  1. Check the benefits of your current scheme: Some pensions come with valuable benefits. This is often the case with defined benefit (DB) pensions, but some defined contribution (DC) pensions will also have benefits. This could include being able to access your pension sooner or providing a pension for your spouse or civil partner. Make sure you check first – you will lose these benefits if you transfer out of a pension.
  2. Review exit penalties and entry charges: In some cases, you won’t have to pay additional charges when transferring your pension, but you should always check. There may be fees from the current provider and the one you’d like to switch to.
  3. Get advice: The decisions you make about your pension could affect your income and lifestyle throughout retirement. You should take advice before moving forward. Please contact us if you’re thinking about switching pension provider to discuss your options and retirement goals.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future.

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I would highly recommend Darius and John. I’ve used a financial adviser previously and could never get in contact with them when I needed their help. Stratton Wealth Management have been excellent from the start. They are always available to talk, and they also don’t talk in financial jargon!

Dave Rigby -

A client since 2015

Having recently transferred my financial management to Stratton Wealth Management, I have been extremely impressed with the highly professional service I have received. I feel I have been fully involved in all decision making, and the company's highly skilled advisers have shown commitment and patience in any dealings I have had with them. I have also always found them to be easily accessible for any discussion I may require.

Denise Thornton -

A client since 2019

As a business owner and father of four children, finances are usually the last thing we think about. Stratton oversees and manages our finances, both in terms of advice for my business and our personal investments. It is comforting to know that our retirement, investment and life insurance planning has been taken care of. Darius and John are always so efficient in dealing with our affairs. As someone with no real understanding of the ins and outs, it has been fantastic to have experts giving us great advice and making sure our best interests are always the top priority.

Lee and Claire Parkinson -

Clients since 2016

Darius deals with my family’s finances and is a very trusted adviser. We meet a number of times a year, but I know I can call him any time if I have any questions. He is proactive, helpful and friendly!

Jonathan Dennis -

A client since 2019

Darius has been our adviser for a number of years, and when he told us he was starting his own firm, we had no hesitation in moving with him. We had a number of areas that we needed help with, including the complexities around an employee share scheme, investments for us and our new child, in addition to our retirement planning. Darius has continually provided us with a first-rate level of service and we would highly recommend Stratton.

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Clients since 2017

I knew I needed to begin saving and planning for the future but didn’t know where to start. Stratton helped me to understand my finances and put together a savings plan that is affordable and works for me. I now have and an ISA and a pension, and whilst retirement is many years away, I have the peace of mind that I am saving for my future. I look forward to working with them for many years to come.

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A client since 2016

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A client since 2018

Many thanks indeed for your in depth report for my client Mrs H – it is most thorough and above all readable. This might sound particularly strange; however you may well gather that in my profession we see many such reports, and I often feel that if the adviser fills it with charts and graphs it evidences a level of research. In truth most of what is produced is readily obtainable from the internet.

I would like to thank you (and your organisation) for your prompt and professional attention to my requirements on behalf of my client. As a practice we shall definitely be putting Stratton Wealth Management on our “preferred supplier list".

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A client since 2015