SIPP accounts are currently offered on a Beta basis and are available only to a limited number of users for testing purposes. During this period, features, functionality, and availability may be subject to change or withdrawal without notice.
We will announce when SIPP accounts become available to eligible UK-resident clients of Trading 212 UK Ltd.
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