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Final Salary Pension

Transfer

Benefits vs Risks

The benefits of membership of a final salary pension

scheme (defined benefit pension scheme) have long

been recognised. So why consider transferring out of

such a scheme?

What are the benefits and risks?

What’s Changed

Everything changed with the Chancellor’s budget

of 2014 (effective April 2015). Significant changes

were made to pension rules and the tax position

on inheritance which made a Final Salary Pension

Transfer considering as a viable option.

What Are The

Benefits

* The 55% tax has been scrapped which means your beneficiaries will pay no tax if you die before aged 75 and

only pay tax at their marginal rate of income tax when withdrawing benefits if you are over 75 when you die.

Transfer values relative to

future pension entitlements

are higher now than ever

before.

The new tax rules mean it is

now possible to transfer the

value of a pension scheme

in order to bequeath it to

your children after you die.*

A transfer offers you

flexibility over how much

you withdraw from your

pension fund and when. A

final salary pension does

not offer this flexibility

Your final salary scheme

will normally continue to pay

your spouse after you die

but the amount is controlled

by the scheme terms . A

transfer puts you in control.

A Transfer gives you the

flexibility to deal with

specific family

circumstances such as is ill

health.

Should you have concerns

about the long term viability

of your final salary scheme

a transfer puts you in

control.

And The Risks

The transfer value offered by

your employer may be low

and may not exceed (or at

least match) the return you

would have expected if you

had stayed with the scheme.

Once you have made your

Final Salary Pension

Transfer there is no going

back

Any investment is a risk. It is

important to carefully

consider if you are better off

where you are

If you do transfer, your

investment will require

ongoing management. You

will need to actively

manage your fund or pay

someone to do so.

Why Professional

advice is important

Given the complexity and the risks involved it is essential to seek out appropriate

Independent Financial Advice to aid your decision making process.

Safeguards are already in place with a legal requirement to get properly qualified independent

advice on a transfer from a final salary scheme with a transfer value of £30,000 or more before

it’s executed.

Not all advisers are prepared to offer advice on Final Salary Pension Transfers and it is

best to select one with appropriate experience of the process.

For a no obligation discussion of to establish if a final salary pension transfer may be right for you

call 0800 042 8341 or Email enquiries@thepensionreviewservice.com or for pension tips and

advice visit our blog

Helping People Secure their Financial Future. Download our free Final Salary Pension Transfer Guide HERE.

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The content of this guide is for general information and use only, and is not intended to

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