Can I transfer my old workplace pension to a SIPP?
Are workplace pensions transferrable? We cover everything you need to know about transferring an old workplace pension to a Self-Invested Personal Pension (SIPP).
Last Updated: 29 July 2025
Do you have an old workplace pension gathering dust? You’re not alone. Whether you’ve switched jobs or simply lost track, it’s common to have multiple pensions spread across different providers, each with its own fees, investments and value.
If you’re looking for more control over your retirement savings, a SIPP could be a powerful alternative.
We take a closer look at everything you need to know about transferring a workplace pension to a SIPP below. This article isn’t personal advice. If you’re not sure what’s right for you, seek financial advice – our advisory team could help.
Workplace pensions vs SIPPs
If you've left a previous employer, transferring your workplace pension to a SIPP can give you greater control and flexibility over how your retirement savings are managed.
Workplace pensions are set up by your employer. Contributions are usually deducted directly from your salary, and your employer is required to pay in a minimum percentage too – boosting your pension pot. However, investment options are typically limited to those offered by the provider your employer has chosen. Once you leave the company, employer contributions stop, and if you wanted to continue paying in you’d need to arrange this directly with the pension provider separately.
There are two main types of workplace pensions:
- Defined Contribution (DC) schemes - where your retirement income depends on how much is paid in and how your investments perform.
- Defined Benefit (DB) schemes - which promise a guaranteed income in retirement, usually based on your salary and length of service. These often include valuable benefits, and transferring this pension to another provider usually requires financial advice.
SIPPs, on the other hand, often offer more freedom and opportunity. You can make personal contributions at your own pace – usually still benefiting from government tax relief – and choose from a much wider range of investments. This gives you the ability to tailor your portfolio to your own goals, values and appetite for risk, with the potential to boost long-term growth.
A SIPP can also make it easier to manage your pensions by consolidating old workplace schemes into one place. With a clearer view of your pension savings and investments, it becomes easier to track your progress, monitor diversification and plan ahead for the retirement you want.
Pension and tax rules can change, and benefits depend on your circumstances.
Should you transfer your workplace pension to a SIPP?
If you have a DC workplace pension and want more control, flexibility and investment choice, a SIPP could be a smart option. But transferring isn't always the right move – it’s important to weigh up the pros and cons and seek professional advice if you're unsure.
For those looking to take charge of their retirement savings, the HL SIPP offers a great balance of control, choice and support, all from the UK’s leading direct SIPP provider.
Things to consider before transferring your old workplace pension to a SIPP
- Exit penalties or transfer charges – Some pension providers charge for leaving their scheme. While the Financial Conduct Authority (FCA) caps exit fees at 1% for most pensions, charges can still apply – particularly if you're under your scheme's normal retirement age.
- Guaranteed benefits – Some workplace pensions offer valuable guarantees, like enhanced tax-free cash or guaranteed annuity rates. These benefits could be lost on transfer.
- Advice requirement – If your pension includes safeguarded benefits and is worth more than £30,000, you’ll be legally required to get regulated financial advice before transferring.
- Wide investment choice. Access a broad range of investment options to build a portfolio tailored to your goals.
- The UK’s largest direct SIPP provider. Join over 550,000 SIPP clients who trust us with nearly £49bn in pensions.
- A simple ready-made investment option. Not sure where to invest? The HL Ready-Made Pension Plan is an investment solution, managed by experts.
- Award-winning app. Manage your pension anytime, anywhere online or with the app.
- Flexibility and control. Adjust your contributions, investments and income withdrawals to suit your lifestyle and retirement plans.
Why transfer a workplace pension to the HL SIPP?
Remember, investments can rise and fall in value, so you could get back less than you invest.
More on transferring to the HL SIPP
Talk to our advisory team
Thinking about transferring? Whether you're consolidating old pensions or planning for retirement, it's important to understand your options.
HL’s advisory team are here to guide you through the first steps. They’ll help you understand whether advice might be right for you, what’s involved in transferring, any costs, and what to watch out for.
This initial conversation won’t be personal advice. If advice looks appropriate for your situation, they’ll arrange a call with one of our qualified financial advisers.
