Defined benefit (Final Salary) pension?
Defined Benefit final salary pension transfers are a hot topic.
Individuals with benefits with a value over £30,000 must take advice as stipulated by the Financial Conduct Authority and the advice must be from a regulated advisor who has the relevant permissions and qualifications.
To transfer or not to transfer…
A transfer of a defined benefit pension or final salary scheme should not be taken lightly. By transferring you would be giving up a guaranteed income for life. This may well be indexed linked for life and can be a valuable benefit.
This is the primary reason why the Financial Conduct Authority introduced rules making taking advice from a relevant qualified pensions specialist mandatory for a potential transfer with a value over £30,000.
A transfer can be beneficial …
A transfer can be beneficial. It can potentially offer higher tax-free cash, enhanced death benefits, income flexibility, and earlier access to benefits if you are over 55. But all factors must be considered when assessing whether a transfer is in an individual’s best interest.
All transfers are not equal …
The values offered from scheme to scheme vary dramatically. Some are quite generous, many offer relatively poor values. It is critical to appreciate the real value of the benefits you have in a scheme, and fully understand the impact and options of a transfer.
Pensions Advice UK only use fully qualified financial advisors who hold the specialist Financial Conduct Authority (FCA) permissions to be able to advise on pension transfers.
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