The Pension Freedoms introduced in April 2015 have created much interest in Final Salary Pension Schemes. The reason for this is that it is now possible for many people to transfer out of a final salary scheme into a defined contribution scheme.
Under the new pension rules savers are able to take advantage of full access to a pension fund. Allied with historic high Cash Equivalent Transfer Values and the decision to transfer seems obvious.
We look at seven advantages to transferring, and seven reasons why transferring may not be the best idea in your situation.… read more >>
However, under the new pension freedoms, it is possible to obtain far greater sums – as much as twice the original offer – depending on which type of pension you make the withdrawal from.… read more >>
Last month, the Work and Pensions Committee, decided to launch an inquiry into the effectiveness of the pension freedoms policy that came into effect in 2015, giving over-55s full flexibility over how they access their retirement cash.
Since the rules were relaxed, more than £10bn has been withdrawn from defined contribution pensions, as a lump sum, or taken as income. A recent review of pension freedoms by the City regulator found that taking pensions cash before the age of 65 had become the “new norm”, with most choosing to take lump sums rather than a regular income.… read more >>
The pension freedom changes in 2015 have had a huge effect on final salary pension holders. The ability to move from a defined benefit pension to a defined contribution pension has meant that thousands of people have been able to cash in their pensions for hugely inflated transfer values, leaving them with an enormous lump sum, and a considerable change in the future retirement prospects.… read more >>