If you have a defined benefit / final salary scheme, the new pension reforms didn’t provide any real advantage to you. You only have the option to take benefits according to your scheme rules.
The advantages of a defined benefit scheme are great if they suit your circumstances. These include an inflation proofed lifetime income with build in spouses benefit. However, if you want:
- Control over you pension assets which can be passed onto your estate (including children) on death (unlike a defined benefit scheme)
- Flexibility to change your income up and down
- Ability to keep your pension invested with a chance to grow
- Flexibility to either stay invested or buy an annuity at a later date
transferring out of a defined benefit scheme might be more beneficial to you.
Transferring benefits from a defined benefit scheme to a defined contribution scheme is the only way to have control of your pension and access it flexibly.
It is not always the best option however and your personal circumstances will dictate which is the best course of action.
From June 2015 the Financial Conduct Authority stipulated that certain pension schemes require specialist financial advice in order for the funds to be moved. This is because of additional considerations and complexities involved.
Most financial advisers don’t hold these qualifications as it isn’t a requirement to provider normal regulated financial advice. Pensions can be complex, and therefore require extra qualifications from the adviser to be able to assist in the transfer from certain schemes.
We have the required qualifications and experience to provide advice in this area. Just tell us a little about yourself and a qualified adviser will be in contact for a no obligation or charge, initial call.