Company Pension Transfers

Company Pension Transfers

There are several different types of workplace pensions. The most generous schemes are called Final Salary Pension Schemes and many of these have been closed or altered as they became unaffordable for employers. These are based on the number of years the employee worked for an employer, times their salary in their last few years before retirement. Now most schemes are based on personal pension rules where the pension is an investment fund built up over the years and not linked to years of service or income.

An individual can also opt to save separately into a second pension to build up their funds before retirement.

Over someone’s working life the following issues could arise and it is vital that they have a good understanding and can make the right decisions. That is where an Independent Financial Adviser can help with regular review meetings to make sure the right decisions are made at the right times through ones working life.

  • A current pension scheme is closed or altered
  • Moving jobs and leaving schemes behind
  • Combining pensions from multiple or past employers into one scheme
  • Funding extra for a better income in retirement

Final Salary Pension Transfers

In recent years there has been an option to transfer your Final Salary Pension away from a past employer to a personal pension under your own control.

It is vital that you seek advice from an independent financial adviser as there has been poor advice provided mainly by Restricted advisers where the client has moved from a guaranteed gold-plated scheme to an investment fund with no guarantees and open to stock market volatility.

There are now a much-reduced number of companies allowed to provide this specialist advice. However, your Independent Financial Adviser can help you select the most appropriate company for you to arrange the transfer if it is in your best interest. Then, as your local contact, they will provide ongoing advice on the funds you are invested in to match your risk profile and long term aims.