This article is for educational purposes only, to help you understand what a drawdown-to-drawdown transfer is and how it works.
📄 Note
Trading 212 currently does not provide drawdown-to-drawdown transfers, as we do not offer Flexi-Access Drawdown (FAD) on our platform.
What Is a Drawdown-to-Drawdown Transfer?
A drawdown-to-drawdown transfer allows you to move pension funds that are already in a drawdown arrangement from one provider to another. This can help you consolidate your retirement savings or access different investment options.
How does the Drawdown to Drawdown Transfer work?
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Existing Drawdown:
- Your pension funds are already in a drawdown account, meaning part of your pension has been crystallised and you may be taking taxable withdrawals.
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Transferring to Another Provider
- In a typical drawdown-to-drawdown transfer, the funds remain crystallised, so no additional tax-free cash is added.
- Investment options and flexibility will depend on the receiving provider.
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Key Considerations
- Understand the fees and charges of both the current and new provider.
- Check the investment options available in the new drawdown plan.
- Understand how the transfer might affect any income withdrawals or existing arrangements.
- Consider getting regulated financial advice before transferring, especially if your drawdown involves large amounts or complex investments.
❗️ Important
- A drawdown-to-drawdown transfer does not reset your tax-free cash allowance - any PCLS already taken remains crystallised.
- Transfers may take several weeks to complete, depending on the providers.
What parts of my pension can I transfer?
We can only accept the part of a pension you haven't yet used to take pension benefits — the 'uncrystallised' part. Taking a tax-free lump sum (PCLS) or an uncrystallised funds pension lump sum (UFPLS) crystallises part of your pension, and we can't accept the crystallised portion. We also don't support drawdown-to-drawdown transfers.
The remaining uncrystallised part of your pension may still be eligible to transfer, depending on how your current provider holds it and on our acceptance rules.
Need Further Guidance?
Choosing whether to transfer a drawdown plan is an important decision. For personalised guidance, we recommend:
- Booking a free Pension Wise appointment via MoneyHelper
- Seeking advice from a regulated financial adviser