Final Salary Pension Transfer
A final salary pension is also known as a defined benefit pension. A final salary pension offers a guaranteed prearranged pension income based on your final salary. Unlike a defined contribution pension where your pension income can go up and down depending how well the pension scheme investments perform.
Final Salary Pension funds are invested just like any other pension fund. However the company providing the pension will take all the investment risk. If the funds go down in value, you will still be guaranteed your prearranged pension income. If the value of the pension fund goes down there will be a “pension shortfall” or “pension deficit” where there is not enough money to cover the pension schemes obligations. Any deficit will have to be made up by the company. This is why final salary pensions are often known to be the best type of pension you can have.
Many companies no longer offer final salary pensions due to all the risk being borne on them. People are also living a lot longer which puts increased pressure on the amount of money needed in pension funds.
Final Salary Pensions are suitable for the vast majority of members. Transferring from a final salary pension scheme is an irreversible decision and it could have a detrimental effect on your retirement planning. The detail on this website is for information purposes only and is not to be taken as a personal recommendation. Before taking any action, you should take financial advice from a suitably qualified professional financial adviser. Any potential advantages of transferring from a defined benefit scheme to a defined contribution scheme are often outweighed by the costs, risks and loss of benefits involved.
Need help? Get in touch with us today, we love to hear from clients old and new.
Call us on 01264 332334
Visit us at Oliver House, 40A High Street, Andover, SP10 1NF
..... or simply complete the enquiry form below.
Contact us at firstname.lastname@example.org and speak to one of our advisers today
Claim your FREE credit report
Taking a look at your credit report will allow you to see all the information the lender will see when they check your credit profile.
The credit facility has a 30 days free period and can be cancelled at any time. It is then £14.99 per month
Your home may be repossessed if you do not keep up repayments on your mortgage.
Most forms of buy to let mortgage are not regulated by the Financial Conduct Authority.
Page and Page Andover Limited is an appointed representative of The Whitechurch Network Limited which is authorised and regulated by the Financial Conduct Authority.
Registered in England & Wales Company number : 07825326 Registered Address : Oliver House, 40a High Street, Andover, Hampshire, SP10 1NF
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK