Final salary pension transfer values are at a high point. A short case study may illustrate the issue.
Mrs X aged 54 approached us in April 2016 for advice in relation to her final salary pension pension scheme. Our initial advice was for her to remain within the scheme and revisit her options on attaining age 55.
It recently came to our attention that transfer values from the scheme had increased significantly. We requested a recalculation of her transfer value and found that it had increased by 84%
Complete the contact box for a no cost, no obligation final salary pension transfer assessment. It costs nothing to obtain your transfer value and evaluate your options.
What is a pension transfer
A pension transfer from a defined benefit (salary-related) scheme means giving up your scheme benefits in return for a cash value which is invested in another scheme.
What is a transfer value
The transfer value is the cash sum that is offered to give up your defined benefit (salary-related) and it is key to your decision making process. In simple terms it can be expressed as a multiple of the annual pension you would receive from your final salary scheme.
Historically, the multiple may have been between 15 and 20 times the pension from the scheme. Hence, if you were entitled to a pension of £25,000 per annum the cash sum (transfer value) would be in the region of £375,000 to £500,000. However, transfer values are increasing. We have seen multiples in excess of 30 or even 40 times the income offered by the scheme.
We specialise in final salary pension transfers and are authorised and regulated by the FCA. To discuss your pension options (without cost or obligation) call 0800 043 8341, complete the contact box or email email@example.com.