From April 2015, anyone in a Company Pension where the pension benefits on retirement are defined, “a defined benefit scheme” will only be able to take advantage of the new rules if they transfer their pension to a Personal Pension.
Whilst the new pension rules provide a number of advantages:
- Ownership of your pension fund
- Unrestricted withdrawals when you need funds
- The ability to leave your remaining pension fund to your heirs
- The possibility of good investment returns growing your pension fund more
These should be weighed against the disadvantages:
- The transfer value from your Company Pension
- Loss of additional pension scheme benefits such as Life cover
- The possibility of bad investment returns depleting your pension fund
- Uncertainty of the amount of your final pension
There could be a significant financial gain for you, but given the complexities involved in quantifying the above, we strongly advise that you seek professional advice from a fully qualified and regulated Independent Financial Advisor before any transfer is contemplated. Whilst this will not be free, Pension decisions are usually a major financial decision that requires the appropriate level of advice to make the right choice. In contrast, mistakes can be costly. To arrange for a no obligations, initial free telephone consultation click here.