If you leave your pension scheme within 30 days of joining it (or two years if it’s a defined benefit scheme), you can usually ask for a refund of your contributions. Here’s all you need to know.
What happens when you leave a pension scheme
If you leave within 30 days of joining – or two years if it’s a defined benefit pension – you can choose to have your contributions refunded. However, you won’t get any money that your employer contributed.
If you leave your pension scheme after this, you don’t lose the money you’ve built up (including employer contributions). You’ll normally have these options:
- leave it where it is – the provider will continue to manage it and will pay out when you retire, or
- move it to a new scheme – such as one at your new employer.
You might be able to make further contributions later.
For more information, see Leaving a pension scheme.
For help with moving your pension, see defined benefit transfers or defined contribution transfers.
When you can ask for a pension refund
You can usually ask for a refund of your pension contributions if you leave a pension scheme shortly after joining.
To ask for your pension payments back, you usually need to leave your pension scheme within 30 days of joining, or within two years if it’s a defined benefit or final salary pension:
| Type of pension | You can ask for a refund if you join, then leave within: |
|---|---|
|
Two years |
|
|
30 days (known as opting out) |
|
|
30 days as part of the cooling off period, but it may be longer so always check |
If you leave after these periods, you’ll either need to keep the pension where it is, or transfer it to another provider.
What you'll get back
You’ll get the amount you paid into the pension scheme back, minus any tax that needs to be paid (you won’t pay tax on a refund of excess contributions lump sum):
- 20% tax on the first £20,000 you’re refunded
- 50% tax above this.
If you’re withdrawing from a pension you set up yourself, the provider might also hold some money back to cover investment costs.
You won’t get any of the money your employer has contributed. This includes any contributions you’ve made using salary sacrifice. Find out more in our guide Salary sacrifice and your pension.
Keeping the money in the pension and moving it to another provider could be better value as it will include any contributions made by your employer. You’ll also keep any growth your pension may have built in the period since you joined.
How to apply for a pension refund
Contact your pension provider and ask how to apply for a refund of your contributions. You’ll often need to complete a form.
The provider will then check if you’re eligible. If you are, they will arrange for the payment to be made to you.
Need more information on pensions?
Call our helpline free on 0800 011 3797 or use our webchatOpens in a new window. One of our pension specialists will be happy to answer your questions.
Our help is impartial and free to use, whether that’s online or over the phone.
Opening times: Monday to Friday, 9am to 5pm. Closed on bank holidays.
