Transferring your pension can let you stay in control of your pension, and secure the best deal for you and your family.
Why should I consider a transfer?
In most cases you are unlikely to benefit by transferring a Defined Benefits pension. However everyone’s circumstances are different. You may be better off if you:
- Wish to take benefits early and your current scheme wants to apply a penalty
- Are in poor health and/or your life expectancy is short and you want to take a higher income
- Need to secure a higher pension for your spouse/partner
- Want to choose who receives your pension after your death
- Want to be able to draw your benefits flexibly, such as to top up other sources of income or take ad¬hoc lump sums
- Worry that your pension scheme may be underfunded and at risk of closure
Many large companies have found themselves unable to cover their Defined Benefit (salary-related) pension schemes deficits. Consequently they are offering financial incentives to employees wishing to transfer their benefits out. This might be a choice of a cash payment on top of the transfer value or an enhanced transfer value.
Some pension providers are currently giving incentives for individuals wishing to transfer their funds in.
Choosing the right scheme
We can help you to understand both the advantages and disadvantages in what could be one of the most important financial decisions you ever make. With our ability to choose from the whole of the market, we can advise you on which pension providers have the best track records. We want to ensure that your money is working harder for you.
Understanding the risks
Transferring a Defined Benefit pensions scheme scheme may result in you losing valuable benefits. It is not right for everyone, and may not be right for you. Therefore we provide you with a full investigation and report , and you will be given time to consider your options, without pressure.
If you choose to take a cash payment rather than an enhanced transfer value, you might have to pay income tax and national insurance on it and you’ll get less pension than if you had accepted the enhanced transfer value.
At Apex CB Financial Planning, we can help you to understand the risks and to make an informed choice for your future.
To find out more call 01202 622223 or contact us using our online enquiry form.
*Transferring a pension may not be in the best interests of all people. The value of pensions and the income they provide can fall as well as rise.