Did you know that in 2017, 92,000 people in the UK transferred out of their final salary pensions? This is according to a recent report by Money Marketing. This is an increase of 50% vs 2016, where the figure stood at 61,000.
This route is becoming more common since the launch of pension freedoms in 2016, with a variety of reasons for transferring out including generally enhanced death benefits outside the scheme, a member being single/widowed, a member’s tax status, poor health, or simply not needing the money in retirement due to having sufficient savings elsewhere and wishing to leave the funds to children/grandchildren.
However, for the majority of people, it will not be in your best interests to transfer out of the scheme, as you are giving up a guaranteed income in retirement to risk the fund value on stock market performance/returns.
Fernleigh Wearden & Co have over 30 years’ experience in the Lancashire area advising people about their pensions so please do contact us, without obligation, for more information or to review your individual final salary pension.
Also, keep an eye out for our 'Final Salary Pension Triage' document due to be released next month, giving a generic overview of final salary pension schemes and whether it may be in your best interests to consider a transfer.
If you have any questions about your own final salary scheme or have a friend or family member who has a final salary pension who wants advice, please 'contact us'
NB. When considering which adviser to approach for advice, please be aware of the numerous scams by unregulated financial advice firms. Please ensure that any adviser is regulated by the Financial Conduct Authority and your investments are protected by the Financial Services Compensation Scheme.
Please use the link below to view the ‘Pension Wise’ guide if you think you may have been contacted by pension scammers.
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