Challenging the long held view on final salary pension transfers
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Final Salary Pension
Time For A Re-Think
The Pension Review Service
A Trading Style Of County Capital Wealth Management - Authorised and Regulated by the FCA
With Pension Transfer Values At An All
Time High Is It Time To Re-Visit The
Traditional Advice And Consider Transfer
Out Of A Final Salary Pension Scheme?
● The Pension Freedoms (effective April 2015).
● Long Term Low Interest Rates And Q.E.
● The Short Term Impact Of Brexit.
● Increasing Final Salary Pension Deficits.
What Are The Benefits
Of A Transfer
A transfer offers you
flexibility over how much
you withdraw from your
pension fund and when. A
final salary pension does
not offer this flexibility
The new tax rules mean it is
now possible to transfer the
value the value of a pension
scheme in order to
bequeath it to your children
after you die.*
Transfer values relative to
future pension entitlements
are higher now than ever
Your final salary scheme will
normally continue to pay
your spouse after you die
but the amount is controlled
by the scheme terms . A
transfer puts you in control
A Transfer gives you the
flexibility to deal with
circumstances such as is ill
Should you have concerns
about the long term viability
of your final salary scheme
a transfer puts you in
* The 55% tax has been scrapped which means your beneficiaries will pay no tax if you die before aged 75 and
only pay tax at their marginal rate of income tax when withdrawing benefits if you are over 75 when you die.
And The Risks
Any investment is a risk it is
important to carefully
consider if you are better off
where you are
Once you have made your
Final Salary Pension Transfer
there is no going back
The transfer value offered by
your employer may be low
and may not exceed (or at
least match) the return you
would have expected if you
had stayed with the scheme.
If you do transfer, your
investment will require
ongoing management. You
will need to actively
manage your fund or pay
someone to do so.
After detailed consideration Mr X decided to transfer out of a Final Salary Pension Scheme
offering him a pension of approximately £33,000 per annum.
The lump sum secured via the transfer if invested appropriately, using conservative estimates
of investment growth, would allow Mr X to withdraw £33,000 per annum with minimal
withdrawals from the initial capital sum.
It was calculated that if Mr X, and his spouse died before their 90th birthday, then a capital
sum in excess of £250,000 would remain to be passed on to beneficiaries. If they had
stayed with the Final Salary Scheme the benefits would die with them.
Pension transfer values are increasing dramatically on some final salary schemes
When we first met Mrs Y (Aged 54) In April 2016 we analysed her situation and advised it
would be best to stay with her Final Salary Scheme and re-visit her options on reaching age
It recently came to our attention that transfer values from the scheme had increased
significantly. We requested a recalculation of Mrs Y transfer value and found it had increased
by 84%. This, given her particular circumstances, changed our advice to Mrs Y.
Any decision to transfer (or not) must be based on a number of factors and there are risks but with
transfer values at an all time high it is worth at least performing the appropriate calculations.
For a no obligation discussion of to establish if a final salary pension transfer may be right for you
call 0800 042 8341 or Email [email protected] or for pension tips and
advice visit our blog.
We absorb all the costs of initial exploratory meetings, information gathering and reporting
activities. We only charge should an individual decide to proceed with a transfer.
Helping People Secure their Financial Future.
Download our free Final Salary Pension Transfer
The information in this presentation is for general information and use only and is not intended to
address particular circumstances. The content should not be relied upon in its entirety and shall
not be deemed to be or constitute advice. Although every effort has been made to provide
accurate and timely information (as at November 2016) there can be no guarantee that such
information is accurate at the date received or that it will continue to be accurate in future. No
individual or company should act on such information without receiving appropriate professional
advice after a thorough review of their unique circumstances.
We do not accept responsibility for any loss as a result of acts or omissions taken in respect of the
content. Thresholds, percentage rates and tax legislation may change in subsequent finance acts.
Levels and basis of, and reliefs from, taxation are subject to change and their value depends on
the individual circumstances of the investor. The value of investments can go down as well as up.
Trading Style of County Capital Wealth Management Ltd
Authorised and Regulated by the Financial Conduct Authority (FCA number 463679)