Looking to transfer out of your final salary scheme?

Look no further, Suttons Independent Financial Advisers based in Sale, Cheshire, will answer your questions, review your pension, and will let you know if you could benefit from a final salary pension transfer.

By transferring your final salary pension to a personal pension with a new provider you may be able to get greater value for your pension and far more flexibility when you retire. With historically high transfer values, it may be in your best interest to consider a transfer now.

Since 2015, personal pensions are generally much more flexible than final salary schemes and for some clients the high transfer values on offer can bring potentially life changing opportunities.

The historic view is that “it's always wrong to come out of a defined benefit pension scheme”. For some individuals this may no longer be the case and to redress the balance here are some good reasons to consider the transfer option.

You can leave the value of your pension to loved ones on death. A defined benefit pension can be a significant family financial asset, a transfer capitalises and gives you control of this asset, which can now be passed down through the generations without inheritance tax.

Transfer values are so high at present that a good deal of the investment risk associated with transfers can be removed. On most transfer values a 2% real investment return, after fees and inflation, will provide the same level of pension plus potential for residual value to be passed on.

Transfers offer you complete flexibility over when and how much you draw on your pension account and are in complete contrast to a fixed monthly pension income. It's inconceivable that 60 year olds retiring now with the prospect of potentially 30 years or more of retirement will have the same cash needs year in year out until they die.

This flexibility extends to taking the cash as early as age 55 and deferring the taxed pension until it's needed. The potential uses of this early cash sum are extensive, from paying down mortgages early, to investing in ISAs to generate tax free income, investing in a business or helping the next generation on to the property ladder.

Poor health, if you're health is not good and you are less likely to live a long life, you can access 100% of the value of your pension earlier and enjoy it while you are still able to.

Access from 55, you can access your pension from the age of 55 and won't have to wait till the schemes retirement age.

Flexible access and total control over when and how you take your pension. Instead of having two options, either a lump sum and a fixed income, or no lump sum and a fixed income you have complete control from age 55 over how you access your pension. You can take income flexibly, taking more when you need it and less when you don't.

Control over where your pension is invested. You have the freedom to choose how your pension is invested.

With flexibility comes the ability to be tax efficient. In virtually all the cases where we have recommended a transfer there has been the ability to save tax as compared to the rigid defined benefit pension benefits. These can include:

  • A higher tax free cash sum following the transfer
  • The ability to limit pension income to specific income tax bands
  • The opportunity to defer and minimise the impact of lifetime allowance (LTA) penalty tax charges

You may not want to rely on the Pension Protection Fund (PPF) to provide a safety net if your scheme is underfunded.

If none of the above reasons apply to you then transferring out of a final salary/defined benefit scheme may not be the right thing to do, and the majority of people will probably be better off by staying in their scheme.

You pension is a valuable asset, it may be the biggest fund of money that you ever have. There are a number of questions that you will need to address when you are thinking of transferring your final salary benefits. Our Independent Financial Advisers will answer any questions that you may have. They will make sure you understand your options and provide a report explaining the suitability of their advice to enable you to make a fully informed decision.

Below is a list of some of the schemes that our Advisers have handled enquiries from:

Astra Zeneca
BAE Systems
Balfour Beatty
Barclays Bank
British Aerospace
British Telecom PLC
Co-Operative Group
Galliford Try
Jaguar Land Rover
Greater Manchester Pension Fund
Merseyside Pension Scheme
Metal Box
Norwich Union
Premier Funds


Royal Mail
Frank Roberts & Sons Ltd
Scottish Power
Shop Direct Group Ltd
TATA Steel
Taylor Woodrow Construction
The Football Association
Trinity Mirror
Universities Superannuation Scheme (USS)
Yorkshire & Clydesdale Bank

Would you prefer to talk to a female adviser about your finances?

Would you prefer to talk to a female adviser about your finances? A recent report that shows many women are put off seeking financial advice due to it being a male dominated profession.

Looking to transfer out of your final salary scheme?

Look no further, we can answer your questions, review your pension, and will let you know if you could benefit from a final salary pension transfer.
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