Which option on leaving is better?
The decision on whether or not to transfer pension scheme benefits on leaving a scheme will depend on the member’s personal circumstances.
Transfer Value
- How generous is the transfer value from a DB scheme? The member should assess and compare the deferred benefits with benefits offered in the new scheme
- The member may want more flexibility in retirement than the deferred pension can provide.
- Specialist advice should be considered and possibly a full transfer analysis completed to help the member make an informed decision.
Deferred Pension
- For members of DB schemes remember that the amount of pension at the leaving date is known.
- It is guaranteed to increase until retirement and after.
If a member of a DB scheme wishes to transfer to a DC scheme and their transfer value is over £30,000, they must obtain appropriate financial advice.
