Everything you need to know about transferring a PPR (Pension Savings Scheme)

Resumo:

  •  The right to transfer a PPR is provided for in Decree-Law No. 158/2002, as amended by Decree-Law No. 125/2009. This process preserves the plan’s seniority of payments and tax benefits in full. While the process is straightforward, careful consideration of fees, income history and risk profile is required.

  •  PPRs in the form of funds can be transferred free of commission. However, PPRs in the form of insurance with a capital or return guarantee are subject to a legal cap of 0.5% on the amount transferred.

  •  The originating institution has 10 working days to complete the transfer and a further 5 working days to notify the recipient of the amount actually transferred.

  •  At Banco Carregosa, we can help you transfer your PPR and increase your potential returns.

The greatest hidden cost of a Pension Savings Scheme (PPR) is inertia. You sign up for a solution, let time do its work and rarely question whether the terms agreed upon 10 or 15 years ago are still appropriate. In many cases, they are not. Transferring your PPR can increase your potential returns, reduce costs, and ensure that your investment is aligned with your current investor profile, all while preserving the tax benefits you have accumulated.

This guide explains when it makes sense to transfer or keep your PPR, how much it costs, how to make the decision, and how to carry out the process.

What is involved in transferring a PPR?

Transferring a PPR involves moving the plan from one management entity to another while ensuring that the product’s nature and the associated tax framework remain unchanged. This is not a redemption. Instead, the accumulated capital is transferred directly between institutions, bypassing the investor’s bank account entirely. This prevents the loss of tax benefits and the application of early withdrawal penalties.

The operation is set out in Article 6 of Decree-Law No. 158/2002. The preamble to this law expressly permits transfers between identical or different plans. In practice, this means transfers can be made between two PPRs, as well as between fund-based and insurance-based PPRs (and vice versa).

The following remain unchanged: the plan’s seniority (which is relevant for reduced taxation on redemption), any personal income tax deductions already obtained, and the applicable tax regime.

What changes: the management company, the investment policy, the fee structure, and potentially, the level of risk.

When is the right time to transfer your PPR

There are six objective signs that indicate the need to reassess your current plan.

1. Returns are consistently below the rate of inflation

According to market analyses published by ECO in 2025, around 80% of Portuguese PPRs failed to beat inflation over five and ten years, respectively. When a PPR fails to preserve purchasing power, the effort to save is eroded.

2. The management fee is disproportionate to the market median

Seemingly minor differences can have a significant cumulative effect. A 1% annual difference in fees could equate to tens of thousands of euros after 30 years (see the simulation below).

3. The risk profile does not align with the life cycle

The time horizon is crucial. A 25-year-old investor with a pension plan focused on bonds will restrict their long-term growth. Conversely, someone nearing retirement with an excessive allocation to equities risks capital losses that will be difficult to recover from. Aligning risk with age is the first step towards achieving a comfortable retirement.

4. Changes in personal or market circumstances

An investor’s risk profile does not remain the same over time. Changes in one's professional career, a sudden increase in wealth, or a significant change in one’s perception of the economy may require an adjustment to one’s strategy. One of the greatest advantages of the PPR’s flexibility is that it allows you to switch between plans with different risk profiles – ranging from conservative to aggressive – without having to pay capital gains tax when transferring between PPRs. This flexibility means that your investment will always reflect your current circumstances.

5. Multiple PPRs are spread across various institutions

Consolidation makes management easier and gives you an integrated view of your retirement savings.

6. Lack of transparency or unilateral changes to management policy

If the management entity does not provide clear information or makes material changes to the fund’s policy without adequate notification, this may be grounds for seeking alternatives.

When NOT to transfer a PPR: scenarios where it is better to retain your PPR

Transferring a PPR is not necessarily the right decision. It is a different decision. There are three scenarios in which transferring a PPR can destroy value.

Older PPRs with high guaranteed minimum rates

Some PPR insurance schemes taken out when interest rates were high guarantee competitive minimum returns in the current climate. Giving up these conditions should therefore be approached with utmost caution.

Approaching the retirement redemption window

If there are fewer than 12 months to go until redemption, it may not be worthwhile to transfer the PPR, as any potential gain is often offset by the short timeframe and transfer fees.

Transfer fee that cancels out the expected return

For a capital-guaranteed PPR insurance policy, a fee of up to 0.5% could amount to a significant sum. For example, for a sum of €50,000, the fee could be as much as €250. This cost should be weighed against the expected benefits of the new solution, bearing in mind the time horizon.

What will it cost to transfer a PPR in 2026

The legislation clearly distinguishes between two scenarios:

It is important to distinguish between a transfer fee and a tax penalty. Provided that a transfer occurs but no redemption takes place, the tax benefits remain intact and there is no need to repay any previously obtained tax deductions.

The hidden cost: the management fee

The transfer fee is a one-off charge. The management fee is recurring and has a compounding effect.

Consider the following example:

How to transfer your PPR: a 5-step process

1. Assessment of your current PPR

Refer to the annual report and the key information document. Check the following three indicators: the average 3- and 5-year returns (net of fees), the risk level (on a scale of 1 to 7) and the annual management fee. If possible, ask the management company for a full breakdown of ongoing charges (TER).

2. Comparing alternatives

In April 2025, the ASF launched the PPR Comparison Platform, which was created in accordance with Regulatory Standard No. 11/2024-R. This tool allows users to compare the fees, returns, and risk levels of PPRs in the form of pension funds and insurance schemes. For PPRs in the form of UCITS funds, you should also refer to the CMVM’s comparison tool.

The analysis should not be based solely on returns from the past year. Instead, compare three-, five- and ten-year periods across full market cycles and benchmark them against the relevant indices.

3. Defining objectives and profile

Before making a formal application, clarify whether your goal is to maximise returns, reduce costs, adjust risk, or consolidate plans. Having this clarity in mind will help you choose the right target retirement savings plan and prevent you from making rash decisions.

4. Formal application to the new provider

You don't have to redeem the PPR. The process begins at the receiving institution, which will handle all communication with the originating entity. Simply complete the transfer application form and provide details of the PPR to be transferred.

5. Legal deadlines and validation

Following the formal request, the original provider has 10 working days to process the transfer. They then have a further 5 working days to notify the recipient of the transferred amount and the reference date. Finally, check that the amount received is correct, and keep all supporting documents.

Special cases rarely addressed

Partial transfer

The law allows you to transfer only part of your retirement savings plan, while keeping the rest with the original provider. This can be useful if you want to try a new fund manager or spread your investments across different providers.

Multiple PPRs

Consolidating them into a single provider simplifies management. However, in some cases, it may be sensible to maintain two or three PPRs with different profiles. To increase diversification in terms of counterparty risk and management, it may also be sensible not to concentrate all assets with a single provider.

Transfer between types

Legally, it is possible to transfer from a PPR insurance scheme to a PPR fund scheme, or vice versa. Whether you do so depends on your risk profile and current objectives.

The most common mistakes when transferring a PPR:

  1.  Deciding solely on the basis of the previous year’s returns.

  2.  Ignoring the management fee and focusing solely on the transfer fee.

  3.  Transferring an old PPR with a high guaranteed rate without considering the opportunity cost.

  4.  Underestimating the tax implications of a partial withdrawal made by mistake instead of a transfer.

  5.  Failing to compare the risk level of the destination PPR with that of the original.

  6.  Relying on unofficial comparison tools without cross-checking the data with that from the ASF and CMVM.

How Banco Carregosa can support the transfer of your PPR

Banco Carregosa, an independent financial institution founded in 1833, offers the Sixty Degrees PPR/OICVM Flexível.

Fund features:

  •  Active and flexible management with global diversification (shares, bonds and other assets).

  •  Risk rating of 3 on a scale of 1 to 7 (CMVM, Regulation No. 2/2015), with historical volatility controlled between 2% and 5%.

  •  Recognised at the APFIPP/Jornal de Negócios Awards for the third consecutive year in the three-year risk-adjusted return category (as at 31 December 2024).

  •  Competitive fixed management fee, alongside a performance fee that aligns the interests of the manager and the investor (applied to positive performance).

  •  Recommended medium to long-term investment horizon (minimum 3 years).

If you are an investor looking to review or consolidate your plans, the Banco Carregosa team will consider your personal profile, time horizon and financial goals when making recommendations. Find out more about Banco Carregosa’s PPRs or contact us.

Transferring PPRs: FAQs

Does transferring a PPR mean that you lose the tax benefits?

No, provided it is a transfer between authorised institutions and not a redemption. In this case, the plan’s seniority and all tax benefits remain unchanged. However, previously claimed income tax deductions are not refunded.

What will it cost to transfer a PPR in 2026?

The cost of transferring PPRs without a capital or return guarantee (in the form of a fund or insurance) is zero. For PPRs in the form of guaranteed insurance, the cost is capped at 0.5% of the transferred amount, in accordance with the legal limit.

How long does the transfer take?

Following the formal request, the originating institution has 10 working days to process the transfer and a further 5 working days to notify the recipient of the amount actually transferred.

Can I transfer only part of my PPR?

Yes. Partial transfers are permitted by law.

Can I transfer an old PPR with guaranteed capital to a PPR fund?

Yes, transfers between insured and fund-based PPRs are permitted. However, before proceeding, check whether the original PPR has a competitive minimum guaranteed rate, as this benefit is lost upon transfer. Additionally, a 0.5% commission may be charged on the transferred amount if the original PPR is capital- or income-guaranteed.

What happens if the originating entity is late in transferring the PPR?

The 10-working-day deadline is enshrined in law. If this deadline is not met, the investor may lodge a complaint with the relevant institution or appeal to the supervisory authority (ASF for PPR insurance and pension funds; CMVM for UCITS funds).

Do you need to have an account with the new institution before you can request the transfer?

Generally, yes. Most institutions require you to open a bank and/or securities account before they can process the transfer.

How can I tell whether my PPR is a fund or an insurance policy?

Check the Key Information Document or the contract. PPRs in the form of insurance are managed by insurance companies, which are supervised by the ASF. PPRs in the form of funds may be open-ended PPR pension funds (also supervised by the ASF), or PPR/UCITS investment funds (supervised by the CMVM).

Do I have to repay any income tax deductions that I have already received?

No, provided the transfer is not an early withdrawal outside the cases provided for by law.

Disclaimer: This article has been prepared by Banco Carregosa for informational and educational purposes only. It does not constitute an investment proposal or recommendation to buy, nor does it constitute personalised financial advice. Investing in financial instruments carries risks, including the possibility of losing your initial investment. Past performance does not guarantee future results. Before making any investment decisions, we recommend that you consult an account manager or financial adviser to ensure that they are suitable for your risk profile and financial objectives.