Seek specialist advice before transferring your pension

Pension transfers have been in the news a lot lately, since the transfer values have increased.

But Alan Mellor, Managing Director at Phillip Bates & Co Financial Services, has issued a warning to seek specialist advice before transferring your pension.

“It is important to fully understand and appreciate the value of a guaranteed lump sum for the future,” Alan said.
“We are not encouraging people to transfer their pension.”

Pension transfers came into the spotlight last year, when their value increased as a result of the Brexit vote.

Pressures on some pension schemes had led to some making hugely inflated offers to people to swap future income for a cash lump sum.

At Phillip Bates & Co FS, we saw cases where the transfer valuations had gone up by tens of thousands of pounds in just a handful of weeks, which for some individuals meant cash sums equivalent to more than 30 times the projected annual income on retirement being offered to final salary (or Defined Benefit) pension schemes.

The sharp rise in transfer valuations may look appealing, but anyone considering leaving their final salary scheme should do so only after careful consideration with their financial advisor.

If you’d like to discuss your position, please contact Alan Mellor on 0151 353 1066.