The Pension House Paraplanner, Laura, achieves Certificate in Pension Transfer Advice
Laura Hutchings, Paraplanner at The Pension House, has achieved her Certificate in Pension Transfer Advice. Joining Jane Stevens who has held her Certificate for 20+ years. This additional certification, achieved in June 2019, adds further value to The Pension House’s clients and is a fantastic achievement.
Holding the Certificate in Pension Transfers means Laura is now able to assist Jane with clients who have safeguarded benefits in Occupational and Defined Benefit or Final salary pensions.
What Are Occupational/Defined Benefit/Final Salary Pension Schemes?
These are pension schemes that are offered (usually) by large employers. Defined Benefit/Final Salary style pension schemes will provide you with an income for life. This income will depend on your salary whilst working, the number of years of service and the accrual rate of the scheme (e.g: 60th/80th).
An occupational pension money purchase scheme is normally a pot value, but can sometimes contain safeguarded benefits, such as Guaranteed Annuity Rates, Guaranteed Minimum Pension and enhanced tax-free cash amounts above the standard 25%.
These types of pension plans, especially defined benefit schemes, are the Rolls Royce of pensions. You are unlikely to obtain a better pension and due to the employer’s cost of running a defined benefit scheme many are now closed. Except for those who work for the public sector (i.e. NHS, Police, Teachers, Civil Service etc.).
However, this style of pension many not be right for you. You may* have the option of transferring your defined benefit/final salary pension into a pot value. Due to the technicality of the defined benefit/final salary schemes you are required** to take financial advice from an adviser who has necessary qualifications.
If you are thinking….
Is this style of pension right for me?
Do I have the option of transferring my pension into a pot value?
Get in touch with The Pension House now
*If you are a member of an ‘unfunded’ public sector scheme or are within 12 months of the schemes normal retirement age, you may not have the right to transfer your benefits away of the scheme. This means you must take your pension income from the scheme.
**If your ‘Cash Equivalent Transfer Value’ offered by the scheme is below £30,000 you are not required to take independent financial advice.