Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Final Salary Transfer boom far from over but what does it mean for you?

Britain’s “final salary” pension transfer boom is far from over, as new figures reveal savers pulled their money from twice as many pensions in the last financial year.

More than 200,000 pension transfers occurred in 2018-19, up from 100,000 the year before. They were also worth much more, totalling £34bn, two-and-a-half times greater than the value of transfers the previous year.

The figures, published in response to a Freedom of Information request by Royal London to The Pension Regulator, found in the last three years pension savers used their rights to move £60bn from defined benefit schemes, into pensions that let them invest and withdraw money as they choose.

And yet the Financial Conduct Authority still tells us “in most cases you’re likely to be worse off if you transfer out of a final salary scheme”

So which category are you in? The 2000 who transferred out £34bn or the millions the FCA tell us would be worse off if they transferred?

I have guided many clients through the transfer process over the last few years. All had three or more of the following characteristics.

  • Been close to, or over, age 55.
  • Have final salary pension benefits with a company for whom they are no longer working.
  • Have one or more very strong reasons for accessing the 25% tax free cash entitlement now or when they get to 55 but don’t need the pension yet.
  • Have limited life expectancy and don’t expect to be drawing their pension for very long.
  • Hate the thought that a pension they have worked so hard to build up will die with them and love the fact that any funds remaining from the transfer on their death can be passed to their beneficiaries.
  • Have other sources of secure income in retirement and look forward to flexibly accessing the transfered funds.
  • Are planning a phased retirement and welcome the tax planning possibilities access to a flexible pension plan will bring.

If you identify with at least three of the above it would be a big mistake not to take a preliminary look at whether a transfer would be right for you.

You will need a transfer report from a regulated pension specialist which is complex, detailed, and expensive. I can source that report for you, but before getting you involved in expensive fees I can provide guidance, education and information, from my 30+ years as a pensions specialist, which will help you decide whether this is something you wish to pursue or not.

I am not a regulated financial adviser and nothing I say should be interpreted as personal advice but I can certainly add some real value to this very complex decision.

If you would like to know more just text me, Richard, on 07770 575122 and I will be in touch.


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

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