Pension Transfer
Pension Transfer
Are you thinking about Pension transfer and are wondering what options available to you?
Before 2001 many pensions that were sold in the UK had high monthly charges as well as annual management fees which over the long term can have a major impact on how much you end up with as a fund to buy your pension. If you think you have an overpriced pension contract it may pay to transfer. Modern pension contracts are more keenly priced and provide flexibility that did not exist until fairly recently.
Pension transfer needs to be an informed process as there may be costs associated with moving to a new provider. Some old style pension contracts will penalize you if you move your fund so it is important that the pros and cons are weighed up carefully.
New pension legislation that came into effect from 6th April 2006 whether you have a personal or company scheme, will affect benefits and/or the levels of contributions your scheme can accept.
In this respect Eden Personal Financial Planning offer you the benefit of Independent advice from experienced and qualified pension advisers who are able to consult with you about your pension transfer options offering you comprehensive impartial advice either face to face or direct without any obligation. Their service offers:
Some basic pension transfer guidelines you might want to consider.
Leaving your job? Many people decide to transfer their pension when they move jobs. This may make perfect sense but it is often worth your while taking time to consider the pros and cons of making such a decision by seeking good financial advice.
A first port of call in seeking advice is by talking to your former company accountant in order to establish whether or not it is possible to stay with the current pension scheme and continuing to make the contributions.
After speaking with the company accountant we recommend that you discuss your pension transfer options with an Independent Financial Adviser as they are most experienced in advising about any transfer charges you may need to take into account or how you may be able to influence avoiding paying the charges. A well-qualified and experienced Independent Financial Adviser will assess each individual case and pension scheme and then advise accordingly.
Some other points to consider may be:
- Asking for a "transfer value analysis" which will enable you to compare your current pension with an alternative scheme.
- If the new pension will allow you the flexibility you need.
- How big the risks are
- The pros and cons of sticking and transferring