What are the potential disadvantages of transferring my UK pension?

Whilst the motivation to transfer a pension scheme might appear to offer benefits, many factors need to be taken into account before an informed decision can be made. Some factors will be more important than others for anyone contemplating a transfer, and the list below outlines only some of those that need to be carefully considered:

• Is the transfer value sufficient to generate returns in the receiving scheme, of an equivalent value to those being given up in a defined benefit (DB) scheme
• Currency conversion rates
• Costs and fees incurred in the transfer process itself and those of the schemes involved

• Exit penalties
• Tax implications
• Loss of guaranteed benefits and therefore potential security
• Legislative changes
• Personal jurisdictional and domiciliary changes
• Accessibility of benefits or funds
• Investment risk and returns