Transferring a pension is optional, not compulsory. This often occurs when people have left a pension scheme, usually due to a change in employment, opting out or deciding to no longer make contributions to the scheme.
You can usually transfer a pension up to a year of taking the retirement benefits so it’s not something that has to be done immediately. You may be able to transfer your pension fund to a new employer’s pension scheme, a SIPP, a Stakeholder Pension or a personal pension.
Just because the pension fund is no longer being paid into, this does not mean that you will lose the benefits relating to that scheme.
Before transferring a pension it’s important that you seek financial advice to fully be able to understand the consequences of a transfer.