When To Consider a Final Salary Transfer
There are many reasons to consider transferring your Final Salary Pension. Even the Government, in its response to the Freedom And Choice In Pensions Consultation, noted:
“… it is likely that some individuals will request transfers out of their defined benefit pensions, and for some individuals, this may be in their best interests.”
In a world full of uncertainties and low interest rates, final salary pension schemes are widely considered a treasure but they can be very inflexible and are often not specifically targeted at individual members’ needs.
A transfer could be right for you if:
- You would prefer to decide when and how you draw your benefits as opposed to the scheme dictating this to you
- You want to pass on the value of your pension to your spouse or children on your death
- You would like the opportunity for a larger tax-free lump sum at retirement
- You are concerned over the stability of your ex-employer
- You would prefer personal investment control and flexibility
The Department for work and pensions (DWP) has now stipulated that no pension provider will accept a transfer from a final salary scheme where the member has not received advice from a suitably qualified Pension Transfer Specialist.
It’s imperative that you get sound financial advice from experts such as Martin and Stephen at Investax, as any action taken is usually irrevocable and there could be valuable benefits that would be lost on transfer. Our aim is to give you the full picture so that you can make an informed decision.