Final Salary Pension Transfer
Scottish Pensions are Scotland’s specialists in the transfer of Final Salary Pensions. Our team of advisers operate right across Scotland including Inverness, Perth, Stirling, Dundee and Dumfries.
Final Salary Pension transfers have grown in popularity over the last two years since Pension Freedom legislation came into play in 2015, coupled with lower gilt yields and interest rates.
Exceptionally high transfer values have led many people holding Final Salary Pensions or as they are sometimes referred to as ‘Defined Benefit Pensions’ to review their options and transfer their funds to a private pension.
We understand that you’ll want to know how much we charge, that’s why we provide competitive ‘Fixed Fee’ quotations.
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Our panel are fully regulated and hold Diplomas in Financial Planning and an Advanced Diploma in Pension Planning.
Scottish Pensions believes everybody within a Final Salary Pension fund should at least have the opportunity to explore their options and discover whether to move or stay if their current scheme is right for them.
If you wish to review your options you can easily contact us by completing the Enquiry Form below or by calling our head office on 0141 465 1909.
Four good reasons why should you consider transferring?
- Currently transfer values are exceptionally high largely due to lower gilt yields and interest rates. There is no guarantee how long this period of high transfer values will last, therefore, to take advantage of these unique circumstances, individuals should act quickly.
- A Final Salary Pension dies when you die – after many years of contributions into this kind of pension there is nothing that can be passed on to next generation. Whereas, if you transfer your pension into a private fund, your pension fund can pass down to the next generation.
- You may be entitled to a higher lump sum from the age of 55 than you would within a Final Salary Pension. This increased tax-free sum may allow you to perhaps retire a little earlier, pay off your mortgage quicker or perhaps allow you to book that holiday you have been looking forward too sooner than you had imagined.
- Tax benefits. There are additional tax benefits with a privately held pension fund which are not available to Final Salary Pension holders. Many of our advisers have been able to restructure their clients finances to lower their tax obligations.
The Transfer Process
Following on from an initial consultation, your adviser will prepare a detailed report which will explain in considerable detail all aspects relating to the transfer of your pension. Thereafter, we will arrange a face-to-face meeting where the report can be discussed in depth and whether continuing with the transfer is best thing for you and your circumstances.
If you choose to progress your adviser will make recommendations on the best fund to be transferred into. Alternatively, should you have your own fund in place we can make arrangements to transfer your funds into that.
Scottish Pensions recognise that taking ownership of your new pension may feel a little daunting at first. At your discretion we can arrange for an Independent Financial Adviser to meet with you periodically to discuss your pension’s performance – to ensure it stays on track and reaches maximum potential for many years to come.
Whilst every pension fund is unique there are some basic similarities which can be found between them. To give an indication of what you Final Salary Pension transfer value could be, shown below are two examples based on recent transfers:
If you are close to the normal age of retirement, then the value of the transfer will typically be higher.
- An individual aged 55 who is entitled to a pension of £30,000 per year from the age of 65 could potentially receive a transfer valued at £600,000.
- An individual aged 55 who is entitled to a pension of £30,000 per year from the age of 60 could potentially receive a transfer valued at £750,000.
Understanding the risks
Anyone considering transferring out of a Final Salary Scheme should appreciate that once a transfer has taken place the decision is irrevocable and that the valuable benefits from the scheme are lost. Your adviser will take your through a rigorous process which will clearly highlight the risks and benefits of transferring — and advise if transferring is right for you.
If you live in Inverness, Perth, Stirling, Dundee or Dumfries arranging your free consultation is straight forward. Simply complete the enquiry form at the foot of this page or telephone our head office in Glasgow on 0141 465 1909.
Our office hours are Monday-to-Friday, 9am to 6pm.