Are you considering a final salary pension transfer?
Since pension freedoms changes (April 2015) annuity purchases have dropped 80%*, and some holders of company pensions are looking at the attractions of a final salary pension transfer;
- More flexibility over when benefits are taken
- More control over how benefits are taken – to reduce tax, for instance
- Death benefits may be available for successors
- There can be more control over investments, if desired
However, with final salary pension schemes a guaranteed indexed income is paid for the member and their spouse during their lifetime. This may sound less exciting, but it does mean all the risk remains with the pension scheme.
Before transferring your pension and accepting the risk personally you need to understand fully the advantages and disadvantages.
To arrange a no-obligation meeting at our expense* call 0141 352 7800
Transfers are complex and irreversible. These transactions require specialist advice and many firms do not offer this service. Tax implications and lifetime allowance issues must be considered carefully. Our initial consultation can help ensure you choose the right option to suit your situation.
* As quoted by ftadviser.com on 29.10.15 “Annuity sales plummet by 87% in Q2, says FCA”.
*Any work you ask us to carry out as a result of this meeting will be fee based.
You could be giving up guaranteed index-linked pension benefits if you do transfer.
Defined benefit pensions are secure. If you transfer to a Defined Contribution scheme you will be taking on the investment risk yourself.
If you take your entire pension fund early you could be financially worse off in the future.