Based in the heart of Cheshire and Greater Manchester
Pension Transfer Specialists
As pension transfer specialists in the heart of Cheshire and Greater Manchester, IJP Wealth Management will examine your personal circumstances and pension benefits to enable you to reach an informed decision.
Since the introduction of pension freedoms in April 2015, you now have more flexible options available for taking tax-free cash and income from defined benefit pensions, as well as potentially improved death benefits.
If appropriate, some investors aged 55 or over now have the option of transferring their defined benefit pension pots to personal or stakeholder pensions, a pension scheme with another employer, or a self-invested personal pension (SIPP).
Thorough review of your personal circumstances
IJP Wealth Management will assess your particular situation and make recommendations on whether transferring out of a defined benefit pension is the right approach to take. Whether you transfer out of a defined benefit pension or not, it is a complicated decision that cannot be answered without a thorough review of your personal circumstances. To ensure that you fully understand the advantages and disadvantages of transferring out, it’s actually a legal requirement that any defined benefit transfer over £30,000 must be signed off by a regulated financial adviser.
Advantages and disadvantages of transferring out
In reality, there’s likely to be both advantages and disadvantages of transferring out of a defined benefit pension. It’s important to understand that the decision could have major consequences for your quality of life in retirement. For example, while transferring out of a defined benefit plan could provide a more flexible retirement income and the possibility of passing your wealth on to future generations, it will also mean sacrificing risk-free income and inflation protection.
Providing you with detailed impartial financial advice
While high transfer values may seem attractive, switching to a defined contribution pension plan could potentially leave you with a financial shortfall in the future. IJP Wealth Management will provide you with detailed, impartial advice in relation to pension transfers, specific to your own unique situation. We’ll help you compare the transfer value you’re likely to receive with the guaranteed benefits you’ll potentially be giving up and discuss the range of options available.
A pension is a long-term investment. The fund value may fluctuate and can go down, which could have an impact on the level of pension benefits available.
Your pension could be affected by interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.