Retirement: Is now the right time to transfer your Final Salary pension?

TransferOver the past few weeks we’ve seen several stories in the personal finance press imploring you to transfer your Final Salary pension. Frankly, this worries us. So, we thought we’d look at some of the issues in more detail. Firstly though, we should point out that this article equally applies for Final Salary and Defined Benefit pensions. But for ease, we’ll just use the Final Salary term from now on. To stoke the fires, this weekend saw Royal London, a pension provider, report that Cash Equivalent Transfer Values (CETVs), the technical term for the pot of ...

Pensions: 5 things to think about before transferring your Defined Benefit pension

open hand on sky backgroundPension Freedom has opened up many more possibilities for people as they approach retirement, including the option to transfer out of their Final Salary pension. Before we go any further we should point out that Defined Benefit pensions are also referred to as Final Salary schemes or maybe CARE (Career Average Revalued Earnings) schemes, however, for the sake of simplicity we shall only refer to them as Defined Benefit pensions in this article. It’s probably still true to say that, for those people who have them, Defined Benefit ...

Retirement: Government expects people to make “wrong choices”, 7 ways to avoid being one of them

Government expects some people to make the “wrong choices”, 7 ways to avoid being one of them?2014 has been a momentous year for pensions, with possibly the biggest changes in a generation announced. However, according to the man overseeing the new rules, Pensions Minister Steve Webb, some pension savers will “make the wrong choices” and end up less well off in retirement. Speaking at a recent conference Mr Webb said: “"This coming April some people will get it wrong. They will make the wrong choices. They will get a worse outcome than ...

Retirement: Pensions Freedom – 6 mistakes to avoid

Pensions Freedom: 6 mistakes to avoidThe introduction of ‘Pensions Freedom’ means 2014 goes down as the year pensions were changed forever. The changes will certainly give you more flexibility when it comes to accessing your pension pot. But despite how the changes are being portrayed by some people, there are serious dangers and pitfalls you need to be aware of. Here are our top six Pensions Freedoms mistakes to avoid: Mistake #1: Guidance isn’t the same as Advice The Government has announced that from April 2015 everyone approaching retirement will be given ‘Guidance’ on ...