Defined Benefit Pension Reviews

Since the introduction of the Pension Freedoms Act in April 2015, any person who has an occupational pension (Final Salary Pension) – or one where there are safeguarded benefits which have a value in excess of £30,000 – has to take financial advice, if they wish to take advantage of the new legislation and consider the benefits of transferring to a personal arrangement.

A defined benefit pension transfer allows you to exchange your future pension income for a transfer value which can then be transferred to a personal pension.

Taking a decision of this nature requires thought and detailed analysis as you will be giving up a guaranteed escalating pension income for life with attaching spouse’s pension if you die.

Why do you have to have financial advice?

The legislation requires you to get financial advice to help ensure you fully understand the benefits of your existing scheme. These benefits are typically a guaranteed and rising income stream for life, a spouse’s pension, and, in some cases, a children’s pension too.

On transfer you would give up the right to these valuable guarantees in return for a pension fund where you are in control of the income and investment strategies, with our help.

In essence, the risk transfers from the employer sponsored pension scheme to you, the pensioner.

Helping you make the right choice

Due to the additional risks, a transfer may not be suitable for everyone. However, there are many circumstances where it may be suitable. Our reviews fully appreciate your individual circumstances.

The Rathmore Financial pension transfer ‘triage’ service (the first stage in the process) sorts potential occupational transfer clients based on their need for transfer advice as compared to their chance of benefiting from such advice.

The flexibility of a transfer may appear to be attractive, but it does not mean that it is right for you.

The wrong decision could cause cost and stress.

Our experienced financial advisers have carried out Defined Benefit transfers for individuals in a range of different situations, including:

  • Preserving death benefits for adult children following shortened life expectancy
  • Preserving a legacy for extended family members, after establishing that the guaranteed income would have been surplus to requirements
  • Providing the ability for a greater income stream to be drawn in early years of retirement, safe in the knowledge that future guaranteed income streams would come into payment, i.e. the state pension and other residual Defined Benefit Pensions
  • Providing a higher tax-free lump sum than would have been available from the existing scheme, to clear mortgage and other unsecured debts.

Giving you greater certainty

Our comprehensive cash flow analysis process is included in every review. We analyse the potential outcome of drawing benefits in the secure and guaranteed manner against a more flexible approach. This helps us to define which scenario will be more suitable for you, before making our final recommendation.

If you are considering a review of your Defined Benefit Pension, it’s important to note that once you have received a Cash Equivalent Transfer Value you will have three months to accept the offer.

The process is detailed and can take some time. We would suggest you contact us first to learn more about the advantages and disadvantages before requesting a Transfer Value. This will help give you the maximum amount of time to complete the process.

Rathmore Financial have been giving advice on pensions since long before the Pensions Freedoms Act was introduced and have a great deal of experience in reviewing Defined Benefit Pensions and those with Safeguarded benefits.

Get in touch today to find out more about how we can support you to achieve a more secure financial future.

Contact us today to book your initial consultation

Meet the team

Will Molony

Will is one of the founding directors of Rathmore Financial Limited. He maintains the same level of enthusiasm and drive for financial planning as he did when he entered the industry in March 1978. It’s just one of the reasons while multiple generations of families have turned to him for financial advice.

A firm believer in having a deep understanding of client needs, Will has used his experience to become an expert in retirement options and pension transfers, and this has enabled him to become a holder of the retirement advice standard from the Society of Later Life Advisers (SOLLA).

Away from Rathmore Financial, Will can be found tending his garden, throwing pots and cheering on Leicester City FC.

Meet the team

Floyd Fombo

Since 1999 Floyd has developed an impressive CV. He has worked as part of a large national IFA’s specialist advisory team, reached the status of Chartered Financial Planner and is Bristol’s longest serving independent SOLLA member.

His experience means that he is equally at home in recommending both conventional and complex financial solutions to his client’s needs – all of which are made based on a deep understanding of their requirements.

Outside of work Floyd spends time with his young family, and can often be found behind the stove or his BBQ as he follows his passion for food beneficiaries.

Meet the team

Paul Scobie

Paul’s career in financial advice spans over 30 years. During this time he has built an impressive network of both personal and corporate clients, all of whom benefit from his expertise across personal cash-flow planning, at-retirement planning and a rigorous approach to problem solving.

His experience of dealing with an ever-changing saving and investment environment, supported by robust and comprehensive long-term financial planning methods, mean that his clients can be confident his recommendations will stand the test of time.

In his spare time Paul can often be found travelling the globe; a great way to indulge another of his passions – architecture.