Transferring out of a Final Salary scheme is unlikely to be in the best interests of most people
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested
Tax Planning is not regulated by the Financial Conduct Authority.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Of 18-34 year olds have no pension in place*
Of people who are actively saveing for retirement*
The average longterm amount in return for seeking financial advice**
With your permission we will speak to providers to try to find information for you. Working with you to help wherever possible.
- Loss of guaranteed income, transferring away from the final salary pension means the client will lose all of the guarantees attached to the scheme.
- The client will be directly taking on the risk, and the fund could run out – if they take too much money or the investments underperform the client could run out of cash.
- Give up the security for dependants, who would lose the right to a guaranteed pension should anything happen to the pension holder.
Pensions can be complicated and with the flexible options now available taking money from your pension can have implications with tax and benefits.
Always seek advice before taking money from your pension.
Traditionally people have used annuities to provide their income in retirement and these may still be the right solution for many. Conventional annuities provide a guaranteed income in return for a capital payment, the income is guaranteed to be provided throughout life. So, no matter how long you live, your annuity income will continue to be paid.
However now Flexible retirement products are available, they provide the opportunity for continuing investment growth. They can be used to pay out any tax-free lump sum available and yet defer income. Alternatively, income can be drawn directly from your pension fund. They can also be used to provide death benefits to your dependents. There are many options now available, which is why it is key to seek advice before you act.
When you take money from your pension pot, usually 25% is tax free. You pay Income Tax on the other 75%.
Your tax-free amount doesn’t use up any of your Personal Allowance – the amount of income you don’t have to pay tax on.
The amount of tax you pay depends on your total income for the year and your tax rate.
We can still consider this type of pension, however we would always need to ensure we leave some behind so that your old pension will stay open and you can keep receiving those important contributions from your employer!
This means that lots of customers choose to leave their active pensions where they are for now, in order to transfer them fully when they leave their current employment.
Again all the information can be presented to you so you know the most suitable options that suit you.
Loss of guaranteed income, transferring away from the final salary pension means the client will lose all of the guarantees attached to the scheme.
The client will be directly taking on the risk, and the fund could run out – if they take too much money or the investments underperform the client could run out of cash.
Give up the security for dependants, who would lose the right to a guaranteed pension should anything happen to the pension holder.
Your pension is there for your retirement, and many people don’t feel they have control when they have several plans. Many pension providers still have a habit of sending lots of paperwork that’s full of small print, jargon and hidden fees that could reduce the value of your pension over time.This can make it difficult to keep track of your retirement savings and plan for the future. Bringing them together can makes it easier to understand your position, you can see your current pot size, your projected retirement income, and alter your contributions to ensure you stay on track to meet your goals.