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Pension Transfers


If you are fortunate enough to be a member of a “gold plated” final salary or defined benefits pension scheme, the decision to transfer your guaranteed benefits should be taken with the utmost caution. It is a decision that could make or break your retirement plans and prove either a great lifestyle choice or a costly mistake.

Here at Quantum Wealth Planning, we believe that individuals considering a transfer of this nature must be given comprehensive impartial advice in a clear, fair and transparent manner. We believe that only those that receive such advice will have considered all the risks involved and will be able to make an informed decision confidently.

The key in providing such advice is to first establish the client’s objectives and retirement plans with the aim of indentifying their reasons for wanting to transfer. Only once we have a clear understanding of specific objectives and retirement plans can we assess whether it is in their interests to transfer. It may be that on assessment, there are alternative options which might prove more beneficial to the individual in meeting their objectives without having to give up the valuable guarantees built in to their final salary pension.

Here at Quantum Wealth Planning, we are Pension Transfer Specialists. Speak with one of our advisers today for a comprehensive review of your finances and expert advice on how to plan for your retirement.

Defined Benefit Schemes

Did you know?

Defined Benefit schemes guarantee you annual income, from the scheme’s normal retirement age, until the day you die. Furthermore, on the death of you (the member), they will then normally continue to pay a reduced pension to the member’s spouse for their lifetime as well. Members elect at outset the tax free cash they want and this generally results in a reduced pension. Once this decision is made, it is final and there is no flexibility.


Did you know?

Up to the scheme’s normal retirement age, the member’s benefits are not subject to the inherent risk of the stock markets but instead enjoy a guaranteed annual increase either by a fixed percentage or by an amount linked to inflation. This is called revaluation. Upon taking benefits once the member is of age, the pension will also be increased annually by much the same method. This is called escalation.

Cash Equivalent Transfer Value

Did you know?

As a member of a defined benefits pension scheme, you have the right to request a “Cash Equivalent Transfer Value” or CETV annually. A CETV is the scheme’s trustee’s best estimation of the monetary value of your benefits in today’s terms. Sometimes, however, the trustees enhance the CETV value in the hope of making a transfer more appealing for the members and these should still be treated with caution.

The volume of pension transfers
in 2018.
Number of FTSE100 companies
providing access to DB pension schemes of 2018.
A typical final salary scheme now costs
more to run than it did just 30 years ago.
For any transfer greater than
£0, 000
it is a legal requirement to seek financial advice from a pension transfer specialist.