Defined Benefit Pension Transfer
We can help you understand the advantages and disadvantages
To request an initial guidance meeting at our expense (over the phone or face to face)
Call us on 0141 352 7800

Transferring out of a Defined Benefit scheme is unlikely to be in the best interests of most people.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Would a Defined Benefit Pension Transfer be right for you?
You may benefit from the increased flexibility around taking tax free cash and income, as well as improved death benefits. 

We have 2 financial advisers who hold the required qualifications to provide defined benefit pension transfer advice. They offer a full and objective professional appraisal so you can make an informed choice.

  • Fully qualified advisers
  • Initial guidance meeting at our expense*
  • An objective, balanced view
  • Capped initial charges for larger transfers
  • Competitive ongoing fees
  • Wide range of investment options
With offices in Glasgow and Dundee we cover the whole of Scotland as well as Northern Ireland.

Ask a question or request a no-obligation initial consultation at our expense*

*Any work you ask us to carry out as a result of this meeting will be fee based.

An overview of the benefits and risks attached to transferring your defined benefit pension. These outline the main points any pension transfer specialist should be covering with you during an initial guidance meeting. Benefits & Risks
Our dedicated website offers more information on Defined Benefit pension transfers including real life Case Studies and Frequently Asked Questions
In the past it was almost always wrong to transfer a Defined Benefit pension (also known as a DB scheme, DB pension, frozen company pension, and final salary pension transfer) into a personal pension. However, since the introduction of ‘pension freedoms’ two years ago, there are more flexible options available for taking tax free cash and income, as well as substantially improved death benefits. Giving up valuable guaranteed pension benefits needs very careful consideration, we will examine your personal circumstances and pension benefits to enable you to reach an informed decision.

Defined Benefit pension transfers have become more attractive to some people, but not to everyone, due to the historically high values as a result of low interest rates/gilt yields. On top of this the weak funding position that many occupational schemes are declaring have concerned some deferred members, especially those with larger benefits who would lose most, if their scheme was forced to enter the Pension Protection Fund.

Scott Fyffe went to great lengths to explain fully to me all the different options open to me for investing my various work pensions and made me aware of all the prospective risks involved in the process. He really knows his business inside out and met me on a few occasions to sort out the final details of my investment. He never tried to make me choose one way or another, he just gave me his expert opinion on all I wanted to know, all in all a very professional and personal service, I can now look forward to my retirement with peace of mind. Thanks Scott.

– Mr B Nicoll, Glasgow

Defined Benefit Pension Transfer Specialists

If you would like to transfer out of your Defined Benefit pension scheme and the cash equivalent transfer value is £30,000 or over, you are required to seek regulated financial advice. Transferring a pension means giving up guaranteed benefits which won’t suit most people. A pension transfer specialist will make you aware of all the risks as well as all the advantages and disadvantages relating to your particular circumstances.

At Henderson Stone & Co Ltd we have 2 financial advisers who hold the required qualifications to provide defined benefit pension transfer advice. They cover the whole of Scotland as well as Northern Ireland. To arrange an initial meeting* at our expense call us on 0141 352 7800 or message us through our contact form including a contact number and the best time to call, and one of our advisers will be in touch shortly.

Kieran McKillop financial adviser and pension specialist
Kieran McKillop – Northern Ireland
Pension Transfer Specialist


Scott Fyffe – Dundee Office
Pension Transfer Specialist

 

After careful consideration, I have decided to take your advice and leave my pension where it is till my 60th birthday. I thank you very much for your help. I will pass on your company to my friends and family. I have found you (Scott Fyffe) to be very professional and easy to understand. I thank you again.

– Louise Mcgurk, Dundee

Scott Fyffe helped me make a life changing decision last year when I was considering transferring my Occupational Pension. Scott went through the options in great detail and his knowledge and understanding of pensions/financial systems is second to none. I was so impressed with the service I received I recommended Scott to some of my work colleagues.

– Mr S, Dundee

Benefits & Risks
Five Benefits of Transferring Your DB Pension

Flexibility
Transfering your pension into a Defined Contribution scheme gives you much greater flexibility
over how much annual income you take, as well as the flexibility to draw down larger lump sums.

Tax Free Cash
Greater flexibility also means greater control over your income tax. For example,
by adjusting your yearly income you could prevent yourself from moving into a higher tax bracket.

Inheritance
Generous tax rules mean a Defined Contribution pension can be inherited by your family upon your death (without inheritance tax if you die before the age of 75). Not only would your partner benefit from your pension but potentially also your children, grand-children and future generations. A DB pension or annuity usually dies with you or your spouse.

Health
For those with ill health or shortened life expectancy transferring into a defined contribution scheme may benefit in terms of securing a higher income either through the purchase of an enhanced annuity or through the increased flexibility and higher tax free lump sum available within the DC pension.

NB. Those in ill health and transferring a pension need to be aware of the potential effects of death within two years of a pension transfer as there may be IHT (inheritance tax) liabilities.

Employer Insolvency 
Some DB members may be thinking of transferring their DB pension because of the weak funding position many occupational schemes are declaring. For most people the Pension Protection Fund (the body established to pay compensation to members of eligible defined benefit pension schemes if their company becomes insolvent), gives adequate cover of 90% of the pension benefits at 65 years of age. However DB members who have built up larger pension benefits over many years are more at risk. If the company pension scheme is unable to pay out after employer insolvency the DB member could find their annual compensation received is capped at a certain level. The cap at age 65 is (from 1 April 2018) £39,006.18 (this equates to £35,105.56 when the 90 per cent level is applied) per year¹.

NB. It is important to take into consideration that if a scheme is underfunded, the transfer value they are offering may be reduced to take account of this underfunding.

¹ www.pensionprotectionfund.org.uk/Pages/compensation.aspx

Five Risks of Transferring Your DB Pension

Uncertainty
The decision to transfer out of a DB pension scheme, once taken, is irreversible. You will be giving up valuable guaranteed pension benefits in the form of a guaranteed income for you and your spouses lifetime.

Inflation
A DB pension scheme has a measure of built in protection from inflation, with a DC scheme you will have to manage the risk yourself, which can be expensive.

Investment Risk
If your new Defined Contribution pension scheme loses value because of low investment returns or high unsustainable withdrawals by you, your fund could reduce significantly or run out, leaving you unable to fund your retirement.

Provision For Your Spouse 
A DB pension is legally bound to offer a minimum pension to your spouse upon your death, depending upon your circumstances you may be better off leaving your pension pot within your Defined Benefit scheme.

Tax
DB pension schemes are treated relatively favourably regarding pension tax relief, depending upon your circumstances you may be better off leaving your pension pot within your Defined Benefit scheme.

Transferring out of a Defined Benefit scheme is unlikely to be in the best interests of most people.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

.

Ask a question or request a no-obligation initial consultation at our expense*

*Any work you ask us to carry out as a result of this meeting will be fee based.

.