Defined Benefit (Final Salary) Pensions

There can be many compelling and appealing reasons to consider a pension transfer – however, there are also many reasons not to. It’s important to take specialist advice before making any decision, in fact, anyone with a transfer value of £30,000 or more is required by law to take advice from a UK registered “Pension Transfer Specialist” before a transfer can be completed.

Defined Benefit Pension - Also known as a Final-Salary Pension, these schemes are linked to an employer and the years of the service you have accrued with them. They normally pay a secure pre-determined income for life, which increased each year by a pre-determined amount. Upon your death, the pension will usually continue to pay a reduced pension to your spouse, civil partner or dependents.

Personal Pension – These are money purchase arrangements whereby your pension is only valued according to the contributions and transfer that you make to the scheme, and the investment performance achieved. These schemes benefit from full pension freedoms for accessing benefits. Upon your death, your pension will pass to a beneficiary of your choosing.

The standpoint we take is you should not transfer your Defined Benefit Pension. However, we do offer a Defined Benefit transfer service, please click here to find out more about this service.