AEGON Pension Reviews, Transfers, Drawdown and More

Aegon is one of the world’s largest providers of life insurance, pensions, and asset management. In the UK, they have shifted from being a traditional insurer (formerly Scottish Equitable) to a technology-driven platform provider. As of 2026, they manage retirement savings for nearly 4 million UK customers.

Whether you have been auto-enrolled into an Aegon workplace scheme or you are using their "Retiready" digital service, understanding their platform-based approach is essential for effective retirement planning.

If you have an existing Aegon pension or are considering transferring your retirement savings to them, get in touch below for independent advice from a pensions expert.

Aegon Pension Products

Aegon’s offerings are largely split between workplace schemes and personal accounts:

1. Aegon Workplace Pension

One of the most common workplace pensions in the UK. These schemes often feature LifePath funds - a "target-date" fund that automatically adjusts your investments based on when you plan to retire. In 2026, Aegon continues to expand these funds to include more private market investments, aiming for better long-term resilience.

2. Retiready (Personal Pension)

Retiready is Aegon’s digital-first pension. It is a personal pension designed for those who want to manage their own savings. It uses a "readiness score" to help you visualise if you are on track for the retirement you want.

3. Aegon SIPP (Self-Invested Personal Pension)

For more experienced investors, the Aegon Platform SIPP offers access to over 4,000 investment options, including ETFs, investment trusts, and individual shares.

Putting an Aegon Pension into Drawdown

As you approach retirement, Aegon offers Flexi-access Drawdown (FAD), allowing you to take an income while keeping the rest of your pot invested.

• How it Works: You can normally take up to 25% of your Aegon pot as a tax-free lump sum. The remaining 75% stays invested in a "drawdown account," and you can choose to take regular or ad-hoc taxable income payments.

• Minimum Age: Currently 55, though this is set to rise to 57 on April 6, 2028.

• The MPAA Trigger: It is important to note that taking your first taxable income payment from drawdown triggers the Money Purchase Annual Allowance (MPAA), which restricts how much you can contribute to other pensions tax-efficiently (currently capped at £10,000 per year).

Alternatives to Drawdown

Drawdown isn't the right choice for everyone. Depending on your risk appetite and health, you might consider:

• Annuities: You use your pot to buy a guaranteed income for life. This removes market risk but lacks the flexibility to change your income later.

• UFPLS (Lump Sums): Instead of moving funds into a drawdown account, you can take one-off lump sums directly from your "uncrystallised" pot. Each payment is 25% tax-free and 75% taxable.

• Small Pot Payments: If you have several small Aegon pots (under £10,000), you may be able to take them as cash without triggering the MPAA.

Reviewing Your Existing Aegon Pension

Because Aegon has acquired several other providers (such as Cofunds and BlackRock’s UK business), many savers hold an Aegon pot without having actively chosen it. A review of an existing Aegon or legacy Scottish Equitable pension is critical:

• Legacy Fee Cleanup: Older Scottish Equitable policies often operate on outdated fee structures that can be significantly more expensive than modern platform rates.

• Investment Alignment: Aegon’s "Target Funds" assume a specific retirement date. If your plans have shifted, your money might be sitting in a "Cash" target fund that isn't providing the growth you need for a long-term drawdown strategy.

• Platform Consolidation: If you have multiple Aegon accounts, a review can help you consolidate them to trigger a lower fee tier.

Transferring To and From Aegon

You will need the help of a pensions advisers to transfer your funds to our from an Aegon plan. In many scenarios, this is a legal requirement.

Transferring INTO Aegon

Aegon utilises the Origo electronic transfer system, meaning transfers typically complete in 2 to 4 weeks.

• The Benefit: Consolidating older, high-charge pensions into Aegon can often lower your overall Annual Management Charge (AMC) because Aegon uses tiered pricing (the more you have, the less you pay as a percentage).

Transferring OUT of Aegon

You can move your money to another provider at any time.

• The Process: You will need your Aegon policy number, found on your annual statement or the Aegon app.

• The Risks: Before leaving, it is vital to check for Guaranteed Minimum Pensions (GMP) or "protected" tax-free cash amounts. These are common in older policies and can be lost if you transfer without expert advice.

Pros, Cons, and Customer Reviews

Aegon offers a high-tech experience, but it isn't without its challenges. Here is the 2026 outlook:

The Pros

• Tiered Fees: Highly competitive for larger pots; the percentage charge drops as your balance grows.

• Digital Tools: The "Retiready" dashboard and "My Aegon" app are highly rated for ease of use.

• Investment Choice: Access to a massive range of funds, including new 2026 allocations into private equity for better diversification.

The Cons

• Legacy Complexity: Managing older Scottish Equitable accounts alongside modern Aegon ones can be a hurdle.

• Mixed Support: While their technical tools are strong, some users report long wait times when dealing with complex manual requests.

What Customers are Saying (2025-2026)

"The digital dashboard is fantastic for seeing exactly where my money is, but I had a nightmare trying to reset my password for the old Scottish Equitable side of the business." — Review from Trustpilot, Jan 2026

"Aegon staff were very knowledgeable when I called about my drawdown options. They didn't rush me, though the paperwork for the transfer took slightly longer than I expected." — Review from Smart Money People, Dec 2025

How Our IFA Service Can Help

At Money Helpdesk, we connect you with Independent Financial Advisers (IFAs) who provide an objective look at your Aegon holdings.

Our IFAs provide:

1. Forensic Fee Analysis: We calculate exactly what you are paying and compare it against the whole UK market to ensure you aren't overpaying.

2. Tax Efficiency: Planning your withdrawals to stay within the most favorable tax bands.

3. Consolidation Strategy: We handle the "heavy lifting" of transferring old pots, ensuring no valuable guarantees are lost.

4. Target Date Check: We ensure your Aegon "LifePath" or "Target" fund actually matches your actual retirement timeline.

Whether you’re an existing customer or are considering moving your pension pot over to Aegon, get started here for independent advice about whether they is the right pension provider for you.