What Should You Do With Pensions From Previous Employments?
Changing job or moving into contracting can leave a pension behind with a former employer’s scheme. Contributions may stop, but the benefits already built up remain important.
It can be tempting either to ignore an old pension or to transfer it simply to have fewer accounts. Neither approach should be automatic.
The right starting point is to identify what you have, understand the scheme’s benefits and compare the available options carefully. This guide provides general information, not a recommendation to transfer or retain any particular pension.
The C Plus retirement planning service explains the pension review support available to professional contractors.
1. Find Every Previous Pension
Create a list of past employments in which you may have built pension benefits.
For each arrangement, collect:
- The latest benefit statement
- The scheme and provider name
- Membership and policy numbers
- Current contact details
- The pension value or promised benefit
- Normal retirement age
- Investment details, where applicable
- Charges
- Death benefits
- Any guarantees or special terms
If paperwork is missing, contact the former employer, scheme administrator or provider. Keep evidence of your requests and update providers if your address changes.
2. Ask for Your Options in Writing
The Pensions Authority says that people leaving employment generally have three broad options depending on the circumstances:
- Leave the benefits in the existing pension arrangement
- Transfer the benefits to another eligible arrangement
- Receive a refund of member contributions in limited circumstances
Your actual options depend on the type of scheme, service history, scheme rules and pension legislation. Ask the scheme administrator for a written statement of the options and the figures applying to you.
3. Review the Existing Arrangement
Leaving the pension where it is may preserve access to the scheme’s existing benefits and investment arrangements.
Review:
- How the benefit will be calculated or invested
- Charges paid by the member or scheme
- Investment choices and switching options
- Retirement and early-retirement terms
- Death benefits
- Access to online information
- How you will keep contact details current
If it is a defined benefit arrangement, the benefit is not assessed in the same way as an individual investment account. Obtain specialist advice before considering a transfer from a defined benefit scheme.
4. Examine Any Eligible Transfer Carefully
A transfer may make administration simpler or provide different investment and retirement options. It can also mean giving up features that cannot be restored.
Before deciding, compare the existing and proposed arrangements side by side:
- Transfer value
- Charges now and in the future
- Investment range and risk
- Guarantees
- Retirement age and benefit options
- Death benefits
- Access and administration
- Advice or commission costs
Do not compare only the number of policies or the appearance of an online dashboard. The underlying benefits and rules matter more than convenience alone.
5. Treat Refunds as a Limited Option
The Pensions Authority notes that a refund of member contributions may be available only in limited circumstances. Tax and scheme rules can apply.
Do not assume that cashing out is available or suitable. Ask the scheme administrator to explain eligibility, deductions and the retirement benefit that would be given up.
Bring Contractor Questions Into the Review
When moving into contracting, include old pensions in the wider plan.
Ask:
- Will I start a new personal or company-supported pension arrangement?
- How do the old benefits fit with my intended retirement age?
- Am I taking too much or too little investment risk across all arrangements?
- Are beneficiary details up to date?
- What information will my accountant and financial adviser need?
- Would transferring affect valuable scheme-specific rights?
The objective is not necessarily to put every pension in one place. It is to make a deliberate decision with a complete view.
Be Cautious About Transfer Pressure
Treat unexpected contact, guaranteed-return claims and pressure to move quickly with caution. Verify the identity and regulatory status of anyone offering advice or arranging a transfer.
Do not share access details or transfer documents in response to unsolicited approaches. If something feels unusual, contact the existing provider using independently verified details.
Keep an Annual Pension Record
Maintain one record showing each pension, latest value or benefit statement, provider contact details and review date.
Review it when you change contract structure, start a new pension, move home, experience a significant family change or alter your intended retirement date. This makes future decisions easier and reduces the chance of an arrangement being forgotten.
Bring Previous Pensions Into One Retirement Plan
C Plus Financial helps professional contractors review pensions from previous employments alongside current contributions and retirement goals. We can help you gather the relevant information, understand the questions to ask and assess the available options.
Important Information
This article provides general information only and does not constitute personal financial, investment or tax advice. Pension options depend on scheme rules and individual circumstances. Transfers can involve giving up valuable benefits. The value of investments can fall as well as rise. Obtain appropriate advice before making a decision.
Sources
- The Pensions Authority, Benefits payable on leaving, accessed 25 September 2026.
- The Pensions Authority, How does my pension scheme work?, last updated March 2024, accessed 25 September 2026.
- Central Bank of Ireland, Can you spot a scam artist?, accessed 25 September 2026.
