Final salary transfers
Transferring a final salary pension is a complex and irreversible transaction that requires specialist advice. Understanding the pros and cons of transferring your benefits is therefore essential before you take any action. In fact, if your benefits have a cash value in excess of £30,000, the Government will require you to take professional financial advice. This is where Rowanbank Financial Consultants come in – with many years’ worth of experience and expertise, we can help you reach your goals based on your individual circumstances.
With life expectancy increasing and investment returns diminishing, many final salary schemes are looking to reduce their liabilities by offering enhanced transfer values. It’s important to remember, however, that although a ‘cash equivalent transfer value’ (CETV) may look attractive, you will be giving up an income that is guaranteed for life.
For many people, transferring a final salary pension does make sense. Clients that we have helped in the past include those that are:
- Single with no financial dependents
- Civil partners/same sex marriage
- In poor health, or whose life expectancy is limited
- Independently wealthy and not solely reliant on their pension in retirement
- Looking for the flexibility to control their income
At Rowanbank Financial Consultants, our expert advisers will research your situation thoroughly and provide you with comprehensive transfer analysis report. If we recommend you proceed with the transfer, then we will arrange the transaction for you and provide ongoing advice.
A pension is a long-term investment. The fund value may fluctuate and can go down, which could have an impact on the level of pension benefits available.
Your pension could be affected by interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.
