Searching for Pension Transfer advice to find out what you can and can’t transfer? Our IFA explains…
If you’re in what’s called an ‘unfunded’ public sector pension scheme, you won’t be able to transfer your pension.
Examples of an unfunded public-sector pension scheme are the Teacher’s Scheme and the NHS Scheme.
You will be able to transfer your pension if you’re in a:
- Private sector defined benefit scheme
- Funded public sector pension scheme (such as the local government pension)
There are certain safeguards in place for these schemes.
Beware of pension transfer scams
You can transfer your pension fund to a new pension arrangement to get cash from it if you’re 55 or over,
But claims allowing you to get cash before 55 or encouraging you to get a higher return than under your current scheme are risky at best and a scam at worst.
Risks of transferring to a defined contribution scheme
Any potential advantages of transferring from a defined benefit pension scheme to a defined contribution one areoften outweighed by the costs, risks and loss of benefits involved.
Your future pension income can’t be predicted with any certainty if you transfer to a defined contribution scheme, regardless of whether it’s run by your employer or it’s a personal or stakeholder pension.
With a personal or stakeholder pension, you’ll give up any benefits you had in the former employer’s scheme.
Still looking for pension transfer advice? Get in touch to arrange your free initial pension review. Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering pension planning advice, mortgage advice and more. You can read our VoucherFor reviews here. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield.
