In this guide we will explain exactly what a final salary (or "defined benefit") transfer is, what has changed recently to make them a sensible option for an increasing number of people and why it’s a great time to look at this option.
This guide looks at how to generate secure, sustainable, tax efficient income in retirement from a collection
of investments and investment accounts. As fewer and fewer of us buy annuities, or rely on defined benefit
pensions to deliver this income, more and more of us are tasked with this key challenge. To create the guide, we have combined the core skills of tax and investment planning with investment management. The guide focuses on using non-controversial tax accounts which are readily available to UK residents and UK tax payers and investing in the major global liquid investment markets. These accounts and investments can be arranged with as little, or as much effort on your part as you wish to make.
The new pension freedom rules coming in to force in April 2015 create a much bigger divide between the shapes of benefits available from a DB scheme and those which can be derived from an invested Personal Pension account. These changes make the transfer option a suitable and attractive transaction for a wider population of deferred members.
Taking a final salary pension transfer is a complex irreversible transaction and as with most complex transactions it makes sense to seek help from a specialist. Tideway’s advisers have handled over 500 final salary transfer enquiries from more than 70 different schemes in 2015 so far. They understand the pros and cons of taking the transfer route and how to optimise the transfer flexibility without taking too much risk with your transfer funds.