"Sometimes if you want to see a change for the better, you have to take things into your own hands."
Clint Eastwood
Hollywood Actor
Transfer a Pension
Plans have changed over decades.
Make sure yours is still right.
There can be a lot of different reasons as to why you may transfer your pension but keeping all in one is probably the easiest way of keeping track of them. If you have worked for many employers in your life, you will have pulled together a lot of different pots.
There are lots of things to think about and be able to have a conversation with a financial adviser about what is best for you and your pensions accounts.
Here To Help
If you’re unsure about making important personal financial decisions without guidance, or worse worried you’ll make wrong ones that could have a negative impact on your lifestyle, you should probably employ the services of a independent financial adviser.
Despite the UK being among the best in the world for quality Financial Services, many find the task of appointing a financial adviser a most daunting challenge.
Below we provide a guide to what you should be looking for to help make sure that when the time comes…
YOU CHOOSE THE RIGHT ADVISER FOR YOUR NEEDS.
Will I save money by consolidating pensions?
Each pension pot you have has its own management fee, so by combining into one, you will be able to reduce this. It also becomes easier to track where your money is, keeping your eggs in one basket.
However, you may not have a fund available that has a low fee, so why not allow an adviser to help you identify one that would work best for you. By doing this transfer, you could save yourself thousands in the future.
What is a defined benefit (final salary) pension and why would I transfer it?
This is offered by some workplaces and involves the employee paying in regular contributions each month. When you reach a certain age, the pension pays you a guaranteed income (known as a final salary scheme), so you should have a steady income for the rest of your life.
Nowadays, people are encouraged to move their DB pension over to a Defined Contribution (DC) pension. DB pensions buy an annuity that you could not achieve from a DC pension, and often seem to provide a lot more so before moving make sur you seek financial advice as to whether this is the best option for you.
Making this move involves trading a lifelong guarantee of income for a finite amount of money and once the move is made, it’s irreversible.
Why would I move it if the DB pension has so many benefits?
Often a DB pension is less flexible than a DC pension. There’s no income variation, you can’t take out large sums at any time apart from that at the end of the final salary scheme, and it can’t be inherited.
There’s also a ‘transfer value’ to consider. Some providers offer good transfer values, however, bear this in mind when making your decision to switch. Would you prefer to have more money available
Can I move any DB pension?
Unfortunately, it’s not possible to move every DB.  Any that are funded privately are the only that can be moved. If you have a public-sector scheme, these are not able to be moved.
What is good about moving my pension?
By moving your DB pension, you can have more flexibility and pass on any spare pension easily to those around you when you are no longer here. Those with low transfer fees are not guaranteed to gain a large annual income so transferring could help you establish one.
Are there any transfer penalties?
If your pension transfer value is lower than its current value, you may accrue some penalties for moving your money. Financial advisers can help you identify these and if it’s possible to avoid them.
How to decide
Make sure you take the advice you need to help you weigh up your long term plans, against your short term. Are there any benefits you have thought about?
The Tavistock Group manages the personal wealth of tens of thousands of people and over £1Billion of investments, providing them with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
Give us a call today on 01432 343322 and ask to speak with one of our advisers,
or email discover@abacusadvisers.co.uk
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Call: 01432 343322
Email: discover@abacusadvisers.co.uk
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Abacus Associates Financial Services is a trading style of Tavistock Partners (UK) Limited which is authorised and regulated by the Financial Conduct Authority, FCA number 230342.
Tavistock Partners (UK) Limited is a wholly owned subsidiary of Tavistock Investments Plc.
Tavistock Partners (UK) Ltd trading as Abacus Associates Financial Services are only authorised to give advice to UK residents.
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