Transfers out of final salary pension schemes have soared over the last couple of years largely on the back of sky high transfer values. Is that about to end?
I spotted something last week which certainly got my attention and yet seems to have been missed by most of the press. Tesco, when announcing their annual results, proudly confirmed that some accounting changes had reduced their pension deficit from £5.5 bn to £2.7 bn. That’s a huge reduction but what does it have to do with transfer values?
I am not an actuary and can’t put figures on it, so let’s just use some common sense. If Tesco feels their pension promise to members is going to cost them so much less, how do you think that will affect their transfer value calculations?
“But I’m not in the Tesco Scheme” you may say… If you really think other Finance Directors are not going to sit up and take notice of what Tesco have achieved you are living in cloud cuckoo land.
If you have benefits in a final salary scheme from previous employment, or are within a couple of years of retirement, you really need to sit up and take action NOW.
I am not a regulated financial adviser and cannot give personal advice or prepare the pension transfer report you will need but I can guide you through the process and help you decide whether it is something you really want to pursue before getting involved in expensive fees (often more than 1% of the transfer value).
Since the beginning of the year I have successfully guided clients through a process resulting in transfers out of final salary schemes of more than £5 million, whilst helping others decide it is not for them.
The initial fee for an exploratory discussion and report is only £250. What do you have to lose?
Take action before the Finance Director of the company providing your pension decides to follow the Tesco example and your sky high transfer value takes a big hit.
Just give me a ring on 07770 575122 or get in touch. I am happy to have a brief conversation before any fee becomes payable.
PS. Do please feel free to share this with any friends or family who might benefit.
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