Can I transfer my defined benefit pension?
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In short: You can transfer a defined benefit pension to a cash pot, but you give up a guaranteed income for life. If the transfer value is above £30,000 you must take FCA-regulated advice first — and for most people staying in the scheme is the safer outcome.
Content updated:
Defined benefit pensions pay an income based on salary and years of service, not investment performance. Transferring out converts that promise into a lump sum you must invest or draw down yourself.
The FCA requires regulated advice on transfers above £30,000 because poor transfer decisions have caused serious consumer harm. Cold calls pushing DB transfers are a warning sign.
Read our defined benefit transfer warning guide and compare DB vs DC pensions before acting. Pension Wise offers free guidance but not transfer recommendations.
Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm027000
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