The benefits and risks of a final salary pension transfer - Autumn 2016

1. Trading Style of County Capital Wealth Management Ltd
Authorised and Regulated by the Financial Conduct Authority (FCA number 463679)

2. Final Salary Pension
Transfer
Benefits vs Risks

3. The benefits of membership of a final salary pension
scheme (defined benefit pension scheme) have long
been recognised. So why consider transferring out of
such a scheme?
What are the benefits and risks?

4. What’s Changed

5. Everything changed with the Chancellor’s budget
of 2014 (effective April 2015). Significant changes
were made to pension rules and the tax position
on inheritance which made a Final Salary Pension
Transfer considering as a viable option.

6. What Are The
Benefits

7. * The 55% tax has been scrapped which means your beneficiaries will pay no tax if you die before aged 75 and
only pay tax at their marginal rate of income tax when withdrawing benefits if you are over 75 when you die.
Transfer values relative to
future pension entitlements
are higher now than ever
before.
The new tax rules mean it is
now possible to transfer the
value of a pension scheme
in order to bequeath it to
your children after you die.*
A transfer offers you
flexibility over how much
you withdraw from your
pension fund and when. A
final salary pension does
not offer this flexibility
Your final salary scheme
will normally continue to pay
your spouse after you die
but the amount is controlled
by the scheme terms . A
transfer puts you in control.
A Transfer gives you the
flexibility to deal with
specific family
circumstances such as is ill
health.
Should you have concerns
about the long term viability
of your final salary scheme
a transfer puts you in
control.

8. And The Risks

9. The transfer value offered by
your employer may be low
and may not exceed (or at
least match) the return you
would have expected if you
had stayed with the scheme.
Once you have made your
Final Salary Pension
Transfer there is no going
back
Any investment is a risk. It is
important to carefully
consider if you are better off
where you are
If you do transfer, your
investment will require
ongoing management. You
will need to actively
manage your fund or pay
someone to do so.

10. Why Professional
advice is important

11. Given the complexity and the risks involved it is essential to seek out appropriate
Independent Financial Advice to aid your decision making process.
Safeguards are already in place with a legal requirement to get properly qualified independent
advice on a transfer from a final salary scheme with a transfer value of £30,000 or more before
it’s executed.
Not all advisers are prepared to offer advice on Final Salary Pension Transfers and it is
best to select one with appropriate experience of the process.

12. For a no obligation discussion of to establish if a final salary pension transfer may be right for you
call 0800 042 8341 or Email enquiries@thepensionreviewservice.com or for pension tips and
advice visit our blog

13. Helping People Secure their Financial Future.
Download our free Final Salary Pension Transfer
Guide HERE.

14. @PensionsReview
/thepensionreviewservice
thepensionreviewservice.com
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15. The content of this guide is for general information and use only, and is not intended to
address particular circumstances. The content should not be relied upon in its entirety and
shall not be deemed to be, or constitute, advice. Although every effort has been made to
provide accurate and timely information, there can be no guarantee that such information
is accurate as of the date it is received or that it will continue to be accurate in the future.
No individual or company should act upon such information without receiving appropriate
professional advice after a thorough review of their unique circumstances.
We do not accept responsibility for any loss as a result of acts or omissions taken in respect
of the content. Thresholds, percentage rates and tax legislation may change in subsequent
Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and
their value depends on the individual circumstances of the investor. The value of
investments can go down as well as up.