Check Old Company Pensions Allow Switches

Published / Last Updated on 16/01/2020

It is not usual but we have recently come across a client with an old company money purchase or investment linked pension scheme that does not allow fund switches once you have left.

By fund switches, we do not mean transferring the pension to a brand new pension scheme, we mean keeping the pension scheme and simply switching funds internally e.g. from stock market funds to property or fixed interest or cash funds and vice versa.

What if you are in a stock market fund and you want to take a lower risk and move to a cash fund but you are blocked as the pension scheme will not allow as you are not an employee or active member of that pension scheme?  What if the stock market then crashes?

As we have said above, this is quite unusual but we urge you to check that you can still manage your old pension schemes as you attitude to risk changes.

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