What is a pension transfer claim?

A pension transfer claim arises where an adviser recommended transferring your pension from one arrangement to another, and that advice was unsuitable. This might involve a transfer from an occupational scheme to a personal pension, from a personal pension to a SIPP, or from one personal pension to another.

Can I claim if I transferred between personal pensions?

Yes. Even a transfer between two personal pension arrangements can give rise to a claim if the adviser did not have adequate grounds for recommending the switch, failed to explain the costs, or placed you in a product that was not suitable for you.

What are the warning signs that a pension transfer was unsuitable?

Warning signs include: you were not clearly told why a transfer was in your interests; the transfer involved significant charges; you were moved into higher-risk investments; you lost valuable benefits such as guaranteed annuity rates; the adviser received a commission from the new provider; or the suitability report did not adequately explain the basis for the recommendation.

Pension Transfer Claims

Nadeem PervazSolicitor, Edward & Amaury Solicitors SRA RegulatedFirm SRA No. 800525

Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.

Published: January 2025 Last reviewed: June 2025About the firm

TL;DR — Quick Summary

▸A pension transfer claim arises when a financial adviser recommended moving your pension from one scheme to another, and that advice was unsuitable or incomplete.
▸Common types include transfers out of defined benefit (final salary) schemes, transfers into SIPPs, and switches between personal pensions.
▸Advisers must have a clear, justifiable reason for recommending a transfer based on your personal circumstances — not just a generic recommendation.
▸You can claim even if you transferred between two personal pensions, not just in and out of final salary schemes.
▸Signing documentation agreeing to the transfer at the time does not prevent you from making a claim later.

If you were advised to transfer your pension from one arrangement to another and the advice was unsuitable or incomplete, you may have grounds to make a claim. Pension transfers can involve significant financial decisions and it is important that any advice you receive meets the required professional standards.

Quick Answer

A pension transfer claim arises when a financial adviser recommended moving your pension from one scheme to another and the advice was unsuitable — for example, because it led to higher charges, involved high-risk investments, or caused you to give up valuable guaranteed benefits without adequate warning. The most common types involve transfers out of defined benefit (final salary) schemes or into SIPPs.

In simple terms: When an adviser tells you to move your pension pot somewhere else, they must have a good reason based on your personal situation — and must tell you clearly about risks, costs and what you might lose. If they did not, you may have a claim regardless of whether you signed paperwork agreeing to the transfer at the time.

What Types of Pension Transfer May Give Rise to a Claim?

Pension transfer mis-selling claims can arise in several contexts, including:

Transfer from an Occupational Scheme to a Personal Pension

Where an employer's occupational pension scheme — particularly a defined benefit scheme — was transferred into a personal pension or SIPP, the advice must have been based on a rigorous assessment of whether transferring was genuinely in the member's best interests. See also: Defined Benefit Transfer Claims.

Transfer into a SIPP

Advice to transfer a pension into a self-invested personal pension raises particular concerns where the SIPP was then used to invest in high-risk or non-standard assets. See also: Mis-Sold SIPP Claims.

Transfer into a Personal Pension or Stakeholder Pension

Even a transfer between conventional personal pension arrangements can be mis-sold. If the transfer was motivated by commissions, resulted in significant charges, or placed you in a less suitable product without adequate justification, there may be grounds for a claim.

Transfer into a High-Risk Investment

Where a pension transfer led to funds being invested in high-risk, alternative or unregulated assets, the advice may have been unsuitable. See: High-Risk Pension Investment Claims.

Warning Signs of an Unsuitable Pension Transfer

You were not given a clear written explanation of why the transfer was in your interests
The transfer involved significant charges or exit penalties from the original scheme
The recommendation was made very quickly without detailed discussion of your circumstances
You lost guaranteed benefits such as a guaranteed annuity rate or final salary income
Your new pension performed significantly worse than your old one
The adviser received commission or other financial incentives for the transfer recommendation
You were not told about the ongoing charges of the new arrangement
You did not understand what you were agreeing to

What Documents May Help?

The suitability letter or transfer report from your adviser
Pension statements from both before and after the transfer
Any risk profiling questionnaire completed at the time
Correspondence with the adviser
Details of any charges paid
Documents from the original and new pension providers