Those who ditched their final salary pension this year made on average £40,000 more than retirees a year ago, as tens of thousands join savers flocking to manage their own money.
Retirees who swapped a guaranteed income for life from their company pension scheme for a lump sum to manage themselves, have received on average £275,000 this year, up from £235,000 in 2018.
The rise was revealed by an annual survey, conducted by consultancy XPS, covering 1,800 transfers between June 2018 and March 2019. The previous survey covered 6,000 transfers...
...XPS estimated around 70,000 people a year are abandoning final salary schemes. Savers are attracted by valuations that can see them receive cash worth 30 or 40 times the annual income provided by their scheme. In addition, the tax-free cash from a final salary transfer could be nearly twice what staying in the scheme would pay, according to calculations by Tideway, a pension transfer specialist...
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Thursday 9 May 2019