An increasing number of deferred members of defined benefit (DB) pension schemes are coming to us to explore alternative retirement options.

The motivation for this activity appears to be related to the record-high transfer values being offered by pension schemes. Transferring allows members to trade in their DB pension for a lump sum, which can be reinvested into a defined contribution pension scheme, or, if you are over the age of 55, used in a way you see fit.

Transfers have become all the more common in recent years since the introduction of pension freedoms in 2015. This gives retirees some flexibility when it comes to the age you can take your pension and how you would like to spend it.

However, the most important thing to remember is that once you’ve transferred your DB pension, there is no way to reverse the decision.

The Financial Conduct Authority (FCA) is actively reviewing the suitability of advice provided by financial advisers in this respect.

What is emerging so far is that the quality of advice does naturally vary from adviser to adviser, as do the charges involved for the work completed.

If you are a member of such a scheme and are considering your options, we can help facilitate the analysis and advice required to ensure you end up making the right decision for the future.

Even if you are part of the way through a process, we can arrange a second opinion to put your mind at rest.

All advice will be provided by a qualified independent advisor with significant transfer expertise.

You only get to make one decision in this highly sensitive area of financial planning, so make it the right one.

Should you require any advice on DB pension schemes or retirement planning in general, please contact Smailes Goldie Financial Management.

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SG Financial Management

We offer independent advice on all aspects of personal finance through our independent financial advice company, Smailes Goldie Financial Management.

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