What is a final salary pension transfer?

If you are nearing retirement, you might be considering the best solution on how to move from a life of work. With a variety of options to choose from, a final salary transfer is a popular choice. Although a final salary pension, also known as a defined benefit scheme, offers a series of advantages, there are still a number of individuals who are opting to make a final salary pension transfer or the conversion of the defined benefit rights for a cash equivalent, generally for more flexibility.

How will your final salary pension transfer be valued?

Your final salary pension trustee will determine your transfer value as well as provide you with a Statement of Entitlement which contains the CETV or cash equivalent transfer value.

Top reasons why a final salary pension transfer might be the right move for you:

Flexible access to money

Choosing to transfer your final salary pension to other alternative schemes offers you more flexibility and allows you to mould your income to suit your needs. This can be beneficial in cases such as controlling the tax you pay by only withdrawing the income you actually need.

Leaving an inheritance

Although your spouse or beneficiary may continue to receive a pension from your scheme in case of death, this will be significantly less than what you were entitled to, if you were still alive. Additionally, if you are single, have no dependents or have a partner but are unmarried (even if you have been cohabiting), the additional spouses benefits of final salary schemes may be of less interest to you.

Enhanced Annuity

If you are a final salary pension holder, you could buy an enhanced annuity if you are not concerned about leaving anything behind after you are gone. Just keep in mind to obtain a transfer value quotation from your current scheme and find out what annuity you might be able to buy before actually making the transfer.

Investax Pension Transfers are an independent company, offering a bespoke service and honest guidance for anyone who is considering to transfer their Final Salary Pension. We strive to help our clients develop a long-term retirement strategy, whilst they benefit from high transfer values and more flexibility over their finances throughout their retirement. Give us a call on 0141 226 2999 to speak with one of our professionals today.