Sustainable pension transfer checklist: what to check before moving a pension
A pension is often the largest investment a person owns, but it is also one of the least inspected.
A pension is often the largest investment a person owns, but it is also one of the least inspected. If you are thinking about moving a pension because you want greener funds, the first step is not the transfer form. It is checking what you already have, what you might lose and what the new provider really offers.
Important: This article is educational and is not financial advice. Pension transfers can be complex. You may lose guarantees, protections, employer contributions, lower charges or other benefits. Consider regulated financial advice before transferring, especially for defined benefit pensions or older policies with guarantees.
This guide builds on our green pension funds guide, climate risk portfolio guide, fund factsheet checklist and FCA SDR labels explainer.
Before thinking about a transfer
Ask your current provider for the fund name, full holdings or factsheet, annual management charge, platform or policy charge, transaction costs, default investment option, stewardship policy, fossil-fuel exposure, climate targets and available self-select funds. Many schemes offer greener fund options without requiring a full transfer.
Use the Pension Climate Snapshot
The Carbon Workbench Pension Climate Snapshot is an educational tool that helps readers frame the questions to ask about pension climate exposure. It is not an investment recommendation. It is a structured way to think about fund emissions, holdings, stewardship, targets and data quality before speaking to a provider or adviser.
Tool via The Carbon Workbench. Educational estimate only.
Transfer checklist
| Check | Why it matters | Question to ask |
|---|---|---|
| Guarantees | Older pensions may include valuable guarantees. | Would transferring remove any guaranteed annuity rate, protected age or other benefit? |
| Charges | Small differences compound over decades. | What is the all-in annual cost of current and new options? |
| Employer contributions | Workplace pensions may include ongoing employer payments. | Could transferring affect future contributions? |
| Fund range | A new platform may offer more choice, but also more complexity. | Which sustainable, climate or fossil-free funds are actually available? |
| Climate evidence | A green fund name is not enough. | Can the provider show holdings, exclusions, voting and emissions data? |
| Risk level | A greener fund may have a different asset mix. | Is the risk level suitable for your time horizon? |
What a good sustainable pension option should explain
- Whether it is a default fund, self-select fund or model portfolio.
- How it defines sustainable, ESG (environmental, social and governance), climate, impact or fossil-free.
- Which sectors or activities are excluded.
- How it votes and engages with high-emitting companies.
- Whether it reports financed emissions or carbon intensity.
- How it handles transition companies, utilities, banks and mining exposure.
- Whether the fund is diversified enough for a pension time horizon.
When not to transfer quickly
Do not rush if the pension is defined benefit, if there are guarantees, if exit penalties apply, if you are close to retirement, if you do not understand the new investment risk or if the only reason for moving is a polished sustainability landing page. In many cases, asking better questions of the current provider is the right first move.
Questions to send your current pension provider
Before transferring, ask your current provider for a written answer to the questions that matter. This creates a record and may reveal that the existing scheme has a better option than you thought. Useful questions include whether the default fund reports financed emissions, whether fossil-fuel exposure is disclosed, whether there is a lower-carbon or fossil-free option, how stewardship voting is handled and what total charges apply.
Also ask whether there are any guarantees, protected rights, exit penalties, with-profits features or employer contribution issues. If the provider cannot answer sustainability questions clearly, that is frustrating, but it is still not a reason to ignore the financial protections a pension might contain.
Transfer decision framework
| Decision point | Stay or switch? | What to check |
|---|---|---|
| Current scheme has a credible green fund | Switching within the scheme may be enough. | Fund charges, holdings, risk level and employer contributions. |
| Current scheme has valuable guarantees | Do not transfer quickly. | Regulated advice, guarantee value and retirement timing. |
| New provider has better fund choice | Potentially useful. | Total costs, fund evidence and whether choice creates complexity. |
| Main concern is climate transparency | Ask more questions first. | Provider disclosures, stewardship reports and available alternatives. |
How to compare pension climate claims
Look for evidence that connects the claim to the portfolio. A provider saying it supports net zero is weaker than a provider showing fund-level holdings, financed emissions, voting records, stewardship outcomes and interim targets. Ask how the pension handles banks, utilities, mining, oil and gas, sovereign bonds and passive index exposure. These areas often decide whether the climate claim is meaningful.
Finally, keep risk in view. A sustainable pension option should still fit the time horizon, diversification needs and retirement plan. A fund that looks greener but is too concentrated, too expensive or too risky may not be the right pension solution.