Dangers of final salary transfers
The new pension freedoms can seem very attractive, and it may be tempting to transfer out of a final salary scheme to take advantage of them. But, a final salary scheme removes many of the risks of retirement and places them with the scheme, the former employer, and also the Pension Protection Fund (the back-up scheme).
If you take a transfer value, the risks become yours.
If you are considering transferring out of a final salary you should always:
Be sure you understand what you are giving up
Ensure you understand you will be giving up a guaranteed income which probably has inflation proofing
Take financial advice from a suitable company (the rules now force you to take financial advice for final salary transfers)
Be aware and careful about scam schemes
Ensure you understand the risks you are taking on with a new scheme
Consider all the options if you are taking benefits- such as an annuity, guaranteed pension contracts along with flexi-access drawdown
If you want to discuss your pension in more detail, then contact us online
, or call 0800 011 2713 for an informal chat.
If you can't find the information you're looking for on the website, or you want to know more or have a question, or just
want to chat through some details about your pension then please feel free to contact us, without obligation.
Either contact us online or call 0800 011 2713.