Pension Review Service

pension transfers : final salary pension schemes, money purchase and occupational schemes

Occupational Pension schemes

Occupational pension schemes are set up by employers to provide pensions for their employees. There are two different types of occupational pensions: final salary schemes (also known as defined contribution pensions) and money purchase schemes.

We can review your existing pension arrangements and advise on occupational scheme transfers as well as money purchase pension schemes.

Money purchase schemes

Money purchase schemes provide benefits on retirement based on the amount of money that has been paid in to the scheme, how long this money has been invested, the level of charges and investment returns over this period.

Following the closure of many defined benefit pension schemes over recent years, money purchase schemes have become the most common type of pension scheme available.

Money purchase schemes cover a wide range of different pension plans, some are provided by employers (employer-sponsored schemes) and others are personal (or individual) schemes.

An employer may decide to set up an employer-sponsored (workplace) money purchase scheme to provide retirement benefits for their employees. There are a number of different types of employer-sponsored money purchase pension schemes. These include:

  • Contracted-out money purchase schemes (COMPS)
  • Contracted-in money purchase schemes (CIMPS)
  • Small self-administered schemes (SSAS)

Pension Transfers

You may want to put several pension plans that you've collected over the years into one pension or simply transfer to a different scheme.

Having everything in one place can make it easy to review and track the performance of your pension. You could also have a better range of investment choices and lower annual charges.

There's no guarantee of a better pension by transferring into one plan; so we would look into that first.

  • We will review and compare your pension free of charge
  • We switch and consolidate your pensions for you
  • We review your pension's performance on an annula basis
  • You can have peace of mind in that our advice is fully authorised and regulated by the Financial Conduct Authority (FCA)

Cashing in your final salary pension

Because of the new pension freedom; swapping your final salary pension scheme for cash has become more attractive.

Since the pensions reforms in April 2015 pension savers may have a “money purchase” option to access their cash at once from age 55. Savers with final salary schemes could access their benefits in cash form only; if they first request a transfer value and move the money.

Final Salary Pensions are suitable for the vast majority of members. Transferring from a final salary pension scheme is an irreversible decision and it may have a detrimental effect on your retirement planning.

Wanting to take early retirement

The first and most obvious reason for cashing in your pension or accessing it in a flexible way is to retire early.

Cashing in your pension, or unlocking it, is the process of accessing your pension pot as a lump sum. In April 2015, this option was made available for every scheme member over 55.

You now have more freedom over how you take money from your pension. Now is the time to review your final salary pension. Please get in touch if you'd like to discuss your options.