SIPP accounts are now live and are being gradually rolled out to clients on the waitlist. Eligible UK-resident clients of Trading 212 UK Ltd will be notified when access becomes available to them.
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.
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