Why consider a final salary pension transfer?
Three reasons to consider a final salary pension transfer:
- Generous pension transfer values. Exceptionally low interest rates have led to high transfer amounts.
- Flexibility. From April 2015, take as much (or as little) income as you want in order to match spending requirements and plans for tax-efficiency.
- Pass the pension on. New rules will allow pensions to be passed down the generations, bypassing inheritance tax.
Three things to watch out for:
- High initial costs for advice and account set up.
- High ongoing costs that eat into investment returns.
- Inappropriate investments that put your pension fund at too much risk.
A final salary pension transfer is a high value, irreversible transaction that can have significant impact on your long term income security and your family's financial assets. It is now a legal requirement that you seek financial advice from an appropriately qualified adviser before you can take a pension transfer.
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