Is transfer out of a final salary scheme ever advisable?

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Final salary, or defined benefit schemes, are considered the cream of the pensions crop, but is there ever a case for advisers to consider transferring international clients out? Deborah Benn talks to Paul Stanfield, chief executive of the Federation of European International Advisers (FEIFA).

The regulators take a tough stance on transferring out of what are seen as ‘gilt-edged’ final salary or defined benefit retirement plans, particularly when compared with the now more common defined contribution (DC) schemes. So much so that a new industry code in the UK brought in last year aims to stop employers offering cash incentives to staff with final salary pensions to encourage them to leave what is now a much more costly scheme for employers to run. A similarly dim view is taken over advisers encouraging clients to give up these benefits, so it’s important to ensure that relevant p...

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