Can I transfer old workplace pensions to a SIPP?
Transferring your old workplace pension to a personal SIPP can help keep things all in one place.

Transferring your old workplace pension to a personal SIPP can help keep things all in one place. You might be thinking about this if you’ve just left one workplace and are about to start another. But finding out the pros and cons could support you in the long run.
Understanding workplace pensions and SIPPs
A workplace pension is set up by your employer for you to save for your retirement. There are two types of workplace pension, defined contribution and defined benefit.
Defined contributions build up a pot of money which can be used to provide benefits when you retire. This pot is made up of contributions you pay yourself, and your employer will usually pay into a workplace pension as well, based on a percentage of your salary. This pot is invested in funds, to hopefully boost its value when you come to retirement.
Defined benefit pensions, however, are a pension that will come with special features. It will build up a right to an income for after you finish work, based on how long you’ve been within the scheme, how much you earnt during that period of time, and any other rules that may come with the scheme. At retirement you might be entitled to a guaranteed annuity rate, or a guaranteed minimum pension. You may also be entitled to a tax-free lump sum payment, but you will usually have to give up some of your built-up pension.
A SIPP (or self-invested personal pension) is a defined contribution pension you set up for yourself to save for retirement. They’re designed to give you more control over how your pension money is invested. You might use it to boost your retirement income, or you might use it as your sole way of saving for your future. It's also tax-efficient, as the government tops it up whenever you pay money in. Even small amounts put away now could grow to give you a rosier retirement, so the best time to start is today.
It’s worth remembering that the value of pensions can go down as well as up and you may get back less than has been paid in.
Your tax benefits will depend on your circumstances and may change in the future.
Eligibility for transferring workplace pensions to a SIPP
When you leave a workplace, you might think about transferring your old pension to keep them all in one place. If you already have a SIPP, you might want to move it into that, or if allowed, you might want to transfer it into your new workplace pension. Some pension schemes allow you to leave your pension where it is and continue contributing to it, and manging your investments yourself. But some may require you to either transfer your money to a new pension, or leave the money in there until you are able to take benefits.
If you’re thinking of transferring your workplace pension into a SIPP, there are a few things you might want to find out before you do so:
- Is my pension defined contribution or defined benefit?
- Will I miss out on any safeguarded benefits, like guaranteed annuity rates, or guaranteed income?
- Do I have to pay anything to transfer my pension?
- Should I get financial advice?
- What does the charging structure look like on my SIPP compared to my old workplace pension?
There are also a few restrictions with certain kinds of pensions you can transfer.
You can’t transfer an active workplace pension to a SIPP because this may mess with your employers’ contributions since they won’t automatically be paid into your SIPP. If you wanted your employer to pay into your SIPP, instead of the pension they’ve set up for you, you’ll have to ask them whether this is something they’re willing and able to do.
If you’re wanting to transfer a defined benefit pension, or any other safeguarded benefit into your SIPP, and your plan is worth more than £30,000, The Financial Conduct Authority (FCA) requires you to get financial advice. But we would always recommend you get advice regardless of how much is in your SIPP.
Steps to transfer a workplace pension to a SIPP
In most cases, if you’re wanting to transfer your pension to a SIPP, you’ll be able to do so online. This does vary from provider to provider, so double check as you might be required to do paper forms.
The best way to get started is by contacting the provider who is receiving the transfer. Often, they just need to know a current value and your policy details to get the ball rolling. They might require you to take a few steps before the transfer can be started, like suggesting financial advice or speaking to the trustees of your current scheme. They’ll then contact your current provider to initiate the transfer, or send you the forms to fill out, then your transfer will be underway!
Benefits of transferring to a SIPP
You might find that SIPPs can be easier to manage because you’re able to keep tabs on your pension in real time, as well as manage it when you need to.
Some SIPPs come with hundreds (if not thousands) of investment choices, some with premade strategies, or just individual shares. So, whether you’re new to investing, or have more experience, there’s an option for you.
You may find that older pension types come with higher charges. By transferring to a SIPP you might be paying less than if you left it where it was, depending on how you invest your money.
Potential drawbacks and considerations
Transferring can come with pros and cons as it can be a complex decision, and it may not be the right choice for everyone. You need to consider and compare the features, charges, fund ranges and any valuable benefits that could be lost. This includes safeguarded benefits such as a guaranteed annuity rate amongst others. It’s also worth noting that your old pension scheme may not be able to take back your pension if you change your mind - even straight after you've transferred.
If you transfer a defined benefit pension, you may find that you will lose certain benefits when transferring. Don't forget that you’ll normally have to get full appropriate financial advice before transferring this sort of pension, or any other pension with safeguarded benefits. You'll need to pay for that advice.
When moving into a SIPP, you’ll also have to be prepared to take on the management of the whole policy. You can, of course, get support from a financial adviser to help you on this, or for free impartial guidance you can check out MoneyHelper.
Depending on your pension, the age in which you can take your policy can change, if you transfer it. With the pension age updating from 55 to 57 as of the 6th of April 2028, pensions which started before March 2023 may be eligible for a protected pension age. This means that you’ll still be able to take that pension at 55. You may be able to keep that right if you transfer the pension, but that will only apply to the amount you transfer. New contributions into your SIPP will usually only be available from age 57.
Choosing the right SIPP provider
Choosing the right provider can seem like a daunting task, but follow our four top tips to help get you started:
- Check the fees across the board. What are they charging you for and what do you get for that price?
- What kinds of investments do they offer? Do they resonate with your values?
- What’s their customer service like?
- Do they have an app so you can manage your pension on the tube, or on the sofa?