Advice On Defined Benefit (Final Salary) Pension Transfer

Defined Benefit Pension Transfers: A defined benefit is also known as a final salary pension scheme.  Basically, retirement income is calculated according to the length of service with an employer and salary at the time of retirement.  Or at the time of leaving employment and revalued to retirement age if earlier.

If you have final salary benefits from previous employment then in many cases, leaving the scheme benefits where they are is the right thing to do. However, you may choose to transfer benefits away from the scheme in exchange for a lump sum.  This is then moved into a separate pension scheme and this is known as a final salary pension transfer.

This is relevant if you need your retirement income to be more flexible.  An example may be if you work part-time but need to access your retirement provision.  Equally, you may have a need for capital that cannot be met by your savings or investments.  An example is where you have a mortgage that continues into your retirement which you wish to clear.  Also, the greater flexibility around who can benefit from your pension on death may be a factor. Should you require greater flexibility in retirement you may wish to take advice regarding the options around your current pension scheme.

If this is the case and the Cash Equivalent Value (CETV) of your old pension is worth £30K or more then regulations stipulate you must get professional advice from a fully qualified Pension Transfer Specialist (PTS) who is regulated by the Financial Conduct Authority (FCA).  

Accordingly, if you would like to know your options we can undertake a careful analysis.  Basically, this is to understand whether the lump sum offers good value for the lost benefits.  This begins with us understanding your needs and objectives. Firstly, receiving a transfer value quote, and then performing a detailed analysis.  Secondly understanding what benefits you would lose if you transferred and how leaving your benefits in the scheme, or transferring, would meet your needs and objectives.

Unlike many firms, we do not outsource this process. This means that you have only one point of contact.  Furthermore and any questions you may have about this process will be answered by us.  Accordingly we will have a detailed understanding on exactly what is involved and the associated benefits and drawbacks.  Which option is best for you depends on your circumstances and what is important to you.  

Whichever type of pension scheme you have, we’ll be able to advise you on your best options.

Get help today regarding Defined Benefit Pension Transfers.  Arrange your free initial consultation