Final Salary Pension Transfers - Is It Time For A Re-Think

1. Final Salary Pension Transfer Time For A Re-Think The Pension Review Service A Trading Style Of County Capital Wealth Management - Authorised and Regulated by the FCA

2. 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?

3. What’s Changed

4. ● 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.

5. What Are The Benefits Of A Transfer

6. 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 before. 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 specific family circumstances such as is ill health. Should you have concerns about the long term viability of your final salary scheme a transfer puts you in control. * 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.

7. And The Risks

8. 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.

9. Some Examples

10. 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.

11. 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 55. 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.

12. 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 enquiries@thepensionreviewservice.com 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.

13. Helping People Secure their Financial Future. Download our free Final Salary Pension Transfer Guide HERE.

14. http://thepensionreviewservice.com /thepensionreviewservice @PensionsReview /company/the-pension-review-service

15. 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.

16. Trading Style of County Capital Wealth Management Ltd Authorised and Regulated by the Financial Conduct Authority (FCA number 463679)