Final Salary Pension Advice
In 2015 the Government implemented changes to how those saving for retirement could take their benefits. This new legislation was widely referred to as Pension Freedoms.
These changes did not apply to those whose retirement benefits were held in a Defined Benefit (DB) arrangement, commonly called a Final Salary Pension Scheme.
As a result there has been huge interest from people with DB benefits in transferring these to a Defined Contribution (DC) arrangement that they can then use to take advantage of Pension Freedoms. There are reports that the number of requests for transfers has tripled since the introduction of pension freedoms. Typical examples of DC arrangements are personal pensions and stakeholder pensions.
We understand this can be a little daunting and so we’ve put together a summary to help you understand the sorts of things you need to consider carefully before deciding if transferring your DB benefits is right for you.
Anyone who has DB benefits with a transfer value over £30,000 is required by law to take financial advice before they can transfer to a DC arrangement.
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