Thinking of switching pension providers? Expert issues key warning

Expert issues warning if you're thinking about switching pension providers for lower fees BBC

Transcript

00:00It's not necessarily the case that you will always be better off switching your pension.

00:04For example, if you are with a current workplace and you have a current workplace pension,

00:09then if you switch that pension away to a totally different company,

00:13you could lose your employer contributions.

00:15And that's really valuable and you don't want to miss out on those.

00:18Also, if you are going to switch your pension, look out for exit or transfer fees.

00:23Also, look out for any benefits that you might lose.

00:26So there sometimes is a guaranteed retirement income at a higher rate that you might then lose if you transfer that pension away.

00:34And I cannot stress this enough.

00:35Please do not transfer defined benefit pensions because you don't have to worry about fees anyway.

00:41And if you were to switch away from those, then you would lose so many valuable benefits there.