3 million pension savers have only a 50% chance of receiving the pension payouts they have been promised. 3,710 pension schemes in deficit.
Just two of the shocking statistics from this, must read BBC Reality Check.
If you still have benefits in an ex-employers final salary pension scheme you really should read this report.
The question is “can I do anything about it?”
Yes you can. Every member of a final salary pension scheme more than 12 months away from their normal retirement date has the right to exchange their pension promise for a lump sum transfer to their chosen personal pension plan. Your money is not then at risk from the failure of your previous employer. Carillion has just gone bust with a pension deficit now thought to be in the region of £990m and 27,500 pension scheme members are at risk.
The problem is that this can be a complicated and expensive exercise with transfer fees as high as 3% of the funds being transferred. If your transfer value is in excess of £30,000 there is no DIY option. You will need a report from a regulated pension specialist.
If you go to your existing adviser there is another problem. Less than 25% of advisers are qualified to give pension transfer advice and their default stance may well be to tell you not to transfer rather than admitting they are not qualified to advise you.
The best starting point is to get some guidance before you get involved in expensive regulatory fees. That is the service offered by The Investment and Retirement Coach Program. I can help you understand the risks and rewards, the processes you will have to go through, how the fee structures work and to decide if this exercise is right for you. It certainly is not right for everyone and the earlier you find out the better.
I will then source a competent, well qualified, cost effective adviser to prepare the required pension transfer report and hold your hand throughout the journey.
Wouldn’t you feel much safer with someone who has more than 30 years of pension experience on your side?
The starting point is a complimentary 20 min telephone call. Just click here or text me on 07770 575122 saying “pension transfer” and I will be in touch.
Still doubtful? Have a read of some of the historical blog posts below. They may just help you make up your mind.
PS. If you are fortunate enough to be in the Local Government, NHS, Police, or similar scheme this is not a problem for you. Just thank your lucky stars and pass this article on to someone less fortunate.
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122