Final Salary Transfers – Our expertise is advising those who are members of a Safeguarded Benefit (also known as a defined benefit or final salary) pension scheme on whether or not they should consider moving to another type of arrangement.
Final Salary Pension Transfers
Know Your Options
If you would like to know your Final Salary Pension Transfer options we can provide a free no-obligation consultation. As part of this we will look at:
- What existing pension plans you have in place.
- Whether you have the right type of pension to transfer.
- What your plans are for retirement.
- How much cash you can release.
- Your taxation position.
- Our initial free consultation will tell you if transferring your pension is not suitable.
In order to establish if transferring your pension is fully suitable for you, which option is best for you depends on your circumstances, and what’s important to you. Everyone’s circumstances are different.
We guarantee that we will present you with a clear set of recommendations in plain English, only advising you to transfer your pension if we believe it’s in your best interest.
Furthermore, we will not hassle you with lots of calls and will only act on your behalf when you provide us with signed written confirmation.
What Are The Benefits Of Final Salary Transfers Or Cashing In A Final Salary Pension Early?
If you are 55+ and have a final salary pension you are not currently paying into or receiving, you can probably transfer it into a new flexible arrangement; and if you need to, release up to 100% as a cash lump sum, the first 25% is usually tax free.
The question is, should you?
A Transfer Might Also Be Worth Considering If:
Flexibility:
you want or need greater flexibility in your arrangements overall than your defined benefit pension scheme offers, for example, you want to retire earlier than it will let you, or it offers benefits for a spouse or civil partner, but you are single and would like to leave benefits to another person.
Tax-free cash:
you need to optimise the amount of tax-free cash you can take from your pension and be as flexible as possible around how and when you can take it.
Inheritance:
you want any remaining pension savings to be left behind for your beneficiaries after you die. With a defined benefit pension scheme, when you and any eligible survivor die (or reach a certain age for dependent children), your pension will cease..
Poor health:
you are in poor health that might limit your life expectancy, in which case you might be able to get a higher income by transferring.
Other sources of income:
you have an alternative, reliable sources of income for your retirement, which mean that you won’t be relying on the guaranteed income for life from your defined benefit pension scheme to support your standard of living. An example might be if your spouse also has a defined benefit scheme and their guaranteed income for life from this is enough to support both of you.
You are concerned about the future of the employer who sponsors your scheme: you have good grounds to be seriously worried about the financial future of the employer who sponsors your scheme, and wonder if that might put your future benefits at risk. You may be concerned about the level of protection offered by the Pension Protection Fund (PPF). The PPF was set up to pay compensation to members of defined benefit schemes should the sponsoring employer suffer an insolvency event. You can find out more about it at www.ppf.co.uk.
If your situation doesn’t fit with one or more of these it may well be the case that our service is not right for you because you’d likely be better off staying in your defined benefit scheme. We’d be happy to explore this with you further before either of us make a commitment to the other.
Speak to a member of our team today
Who Is Least Suited To A Final Salary Pension Transfer
You may be less suited to a Final Salary Pension Transfer if you cannot accept a lower income. For example, you may be considering a transfer because some features of a DC pension scheme appeal to you, such as flexibility or control of your money. But using these features often means having to compromise in other areas, such as the level of income you can take. This means you might struggle to achieve the retirement you want, for example:
If you want a higher tax-free lump sum you will have to take a lower income from your pension.
If you want to retire early your money will have to last for longer, so you will need to budget for a lower income over time.
If you want to control your money you will need to manage your investments and pay charges which will reduce the amount in your pension pot.
Final Salary Transfers Are Probably Not For You If:
- This is your main or only pension.
- You will rely on income from this pension.
- Your DB pension meets your needs so you don’t Need to take investment risks.
- You have dependants you might prefer some of the DB pension features, such as a guaranteed income rather than a lump sum.
learn more in our knowledge lab
You can keep on top of relevant industry news by checking out our blog page, where we discuss topical subjects to further help you answer any questions you may have. We also have free wealth calculators, pension calculators and free download guides throughout the website.
To learn more about how we can help you, contact us today:
0161 388 8875
The UK Pension Landscape
See how UK pension pots differ, depending on region, age and gender
The UK average
£21,164
Average pension pot size
33%
Regularly contributing
Greater London
£22,315
Average pension pot size
33%
Regularly contributing
Compare your region to the UK average by clicking on the map
- East Mid Lands
- Northern Ireland
- Greater London
- South East
- North East
- North West
- Scotland
- South West
- Wales
- West Mid Lands
The average pension pot by age
Age has significant impact on the gender pension gap, with inequality increasing as women get older. By the time women reach their 50s, men have a pot that’s almost twice the size.
United Kingdom
North East
Male £20,514
Female £11,177
North West
Male £18,843
Female £10,988
East Midlands
Male £22,218
Female £12,898
West Midlands
Male £22,141
Female £13,124
South East
Male £32,025
Female £19,046
South West
Male £24,641
Female £13,326
Greater London
Male £24,853
Female £17,863
Scotland
Male £22,266
Female £12,247
Northern Ireland
Male £17,883
Female £7,737
Wales
Male £20,053
Female £11,426
The average pension pot by age
Age has significant impact on the gender pension gap, with inequality increasing as women get older. By the time women reach their 50s, men have a pot that’s almost twice the size.
18%
Gender Gap
£3,215
Average female pot
£3,925
Average male pot
£140,700
Average pension pot size at 65
13%
Have invested in a responsible plan
21%
Gender Gap
£9,537
Average female pot
£12,075
Average male pot
£135,900
Average pension pot size at 65
14%
Have invested in a responsible plan
29%
Gender Gap
£22,589
Average female pot
£33,598
Average male pot
£112,900
Average pension pot size at 65
12%
Have invested in a responsible plan
46%
Gender Gap
£28,249
Average female pot
£52,592
Average male pot
£87,500
Average pension pot size at 65
7%
Have invested in a responsible plan
How socially responsible are British pension savers?
Finally, we looked at how many Brits invest in a socially responsible plan.
The UK average
13%
Dont' just take our word for it
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