Final Salary Pension Analysis
If you have a final salary pension scheme (defined benefits pension) you may wish to review this to see how suitable it is to meet your retirement objectives before choosing to take benefits.
Our view and the view of our regulator the FCA is in the majority of cases transferring a defined benefit or final salary pension scheme into a defined contributions pension scheme is unlikely to be suitable.
Our role is to help you evaluate the purpose of the scheme, the benefits available and how it may be suitable as part of your retirement objectives. If alternative solutions may be more suitable, we will help to demonstrate and model alternative possibilities and make a recommendation.
It is important to consider what you are giving up when considering a transfer and what you are taking on.
An example where a transfer might be suitable would be, if you do not require any income or just require a partial amount of income from the scheme in retirement.
If a guaranteed income in retirement is important to you and you do not like the idea of investment risk and managing your money then it is unlikely that this will be a suitable solution for you.
If you are comfortable with the possibility of fluctuating income and can accept transfer risk and investment risk, a transfer to a defined contribution scheme may help you to choose a different shape of retirement income, pass on your pension wealth to nominated beneficiaries other than a spouse in the event of death or take part of your benefits such as tax free cash without the need for a regular income.
Before making any financial decision such as how to take your retirement benefits it is important to understand all your options, benefits risks and disadvantages and seek advice from a professional on the best outcomes for you. If you wish to transfer a defined benefit scheme with a transfer value above £30,000 you must seek and evidence, you have received financial advice before signing the transfer papers.
If you have already received a transfer value and it exceeds £250,000 or you have retirement benefits of £10,000 or more, you may be suitable for our advice process. If you wish to find out more regarding your pension options, then our video service will provide impartial guidance. If after completing the videos you are still interested in reviewing your pension, please contact us.
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