Pension transfers and pension switches are complex areas that require careful consideration

Whilst the instinct is often for people to want to ‘merge’ all their pensions together, this is an area of planning where expert pension transfer advice really should be sought. Our pension transfer specialists in Leicester can provide bespoke, experienced advice. When considering a potential transfer we fully investigate existing pension arrangements and make a recommendation as to the most suitable course of action, which in many cases may be to do nothing.

We provide invaluable support to ensure you have peace of mind, and have the ability and experience to undertake review and pension transfer services for:

  • Final Salary Pensions
  • Occupational Pensions
  • Personal Pensions and SIPPs
  • Pension and Divorce advice

Whether a Final Salary (defined benefit), Occupational or Personal Pension scheme, irreplaceable pension features can be lost on transfer, such as:

  • Guaranteed annuity rates to convert your pension pot at retirement
  • Guaranteed minimum funds at retirement
  • Loss of terminal bonus
  • Life assurance
  • Greater tax free cash
  • Spouse Benefits

Furthermore, some pension funds will have contractual penalties and reductions in fund values on transfer.

Transfer Advice

An experienced eye is needed in every potential pension transfer case. Our Chartered Financial Planners and Pension Transfer Specialists in Leicester will fully investigate the content of each pension plan and provide advice on the best course of action. When appropriate, we will advise if a pension transfer should not proceed.

Final Salary (defined benefit) Transfer Advice

The Financial Conduct Authority (FCA) introduced new rules in respect of defined benefit transfer advice effective from 1 October 2020.

We will continue to offer the full advice process if you meet all the following criteria:

  • You are a deferred member of defined benefit scheme, with a transfer value of £250,000 or more and at least 10 weeks remaining of the guarantee period
  • You are at least 55 years old (or in serious ill health) and intending to access benefits now or within the next 18 months
  • You are a UK resident

If you meet all the above criteria, we can advise you on whether you should keep your benefits within the existing defined benefit scheme or transfer out to a new pension that we recommend for you.

Please note, we will not arrange a transfer for you if we recommend that you should remain in your existing scheme.

Our charges for this full advice process are £3,000 plus 1% of the Transfer Value, subject to a minimum fee of £5,500 and a maximum fee of £10,000. All fees are subject to VAT and are payable if we recommend you transfer or not.

Illustrative costs:

  • If your transfer value is £250,000, the advice will cost £5,500 plus VAT
  • If your transfer value is £600,000, the advice will cost £9,000 plus VAT
  • If your transfer value is £900,000, the advice will cost £10,000 plus VAT

If you are interested in considering a transfer from a defined benefit scheme, please watch our three videos highlighting the guarantees provided by these schemes and our advice process.