Can I transfer my NHS pension to a SIPP?
23 September 2025
Question by Tom
I'm self-employed now, but have an old NHS pension and I never really understand whether I can transfer it to my SIPP or whether it's best left alone? Many thanks!
Answered by Lucy Grifferty
Hi Tom,
The answer really is: it depends. Were you in the defined benefit or the defined contribution scheme? If you were in the defined benefit scheme then in most cases, no, you cannot transfer an NHS pension to a SIPP. An unfunded public sector defined benefit scheme, like the NHS pension, is not allowed to be transferred. However, if you were a member of the scheme for less than two calendar years, you may be eligible to transfer if you start the process within 12 months of leaving the NHS.
It's important to remember that the defined benefit NHS pension provides a guaranteed, inflation-linked income for life as well as spousal or dependant benefits should you pass away. A SIPP on the other hand is dependent on investment returns for growth and annuity rates at retirement to secure a guaranteed income, so it's not a simple decision. Combining the guaranteed income from the defined benefit scheme alongside your existing, more flexible SIPP may form a good basis for your future retirement.
If you were in the defined contribution scheme, on the other hand, then the option is open and you'd want to weigh up the costs, investment options and access options to begin with alongside the potential consolidation benefits. Also keep an eye out for any special benefits, like higher tax-free cash allowances, that you wouldn't want to give up.
Taking expert financial advice on these sorts of transfers is recommended.
Hope this helps.
