Pension transfers: Top five things clients must consider

Food for thought before cashing out

Jenna Towler
clock • 5 min read

As the controversy surrounding British Steel Pension Scheme transfers grows, PA looks at the top five considerations clients should factor in before leaving a final salary scheme...

Recent Financial Conduct Authority (FCA) research revealed more than half (53%) of retirees who accessed their defined contribution (DC) pensions chose to withdraw their entire pension pot.  Of these fully withdrawn pensions, 52% had been transferred into other savings or investments, thereby losing the valuable tax benefits available in the pension scheme which cannot be replicated, for example, in deposit accounts. According to the FCA, accessing pension pots early has become ‘the new norm' with almost three quarters (72%) of pensions being accessed by individuals under age 65, and ...

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