DB or not DB? That is the Question

by Imogen Smith

By Julie Wilson, Chartered Financial Planner at Pen Life Associates

There’s a lot of nonsense being bandied around on pension transfers. Tens of thousands of British Steelworkers were forced to make quick decisions about very complex pension matters. Which could affect them and their families for the rest of their lives. And even beyond. Most find these options completely overwhelming. And legally, you can’t transfer this type of pension without taking professional advice.

But there are some unscrupulous ‘advisers’ who might take advantage of that fact for their own gain. And – to make matters worse – there are some well-meaning but clueless bystanders. (Did you see I stopped myself short of saying media monkeys.) They’re also wading into the arena with their generic, so-called- ‘advice’. The fact is, every single individual will have completely different circumstances and objectives. There simply isn’t a one size fits all solution.

And this dilemma isn’t exclusively affecting British Steelworkers. Hundreds of thousands of people have ‘final salary’ (otherwise known as ‘defined benefit’ or ‘occupational pension benefits’) schemes. And they all face the same decision. This affects ex-employees of companies like National Grid, Arcadia, most of the UK banks, and closer to home, Rowntree/Nestle and Aviva. The standard advice was always to leave these schemes well alone. But then George Osbourne introduced pension freedom rules in 2015, which allow unrestricted access to personal pension funds… This, and the eye-wateringly high transfer values currently being offered by these schemes has changed everything. Whether you ‘stick or twist’ now depends on a whole heap of factors. And these factors are completely different for everyone. We have advised hundreds of clients on these types of pensions and we’ve never seen two cases that were the same.

The decisions you make around these pensions will affect you and your family for the rest of your lives – and potentially into future generations. Which is why you have to be certain you understand your choices. This is why we host our free seminars – to help people fully understand the decision they have to make. At our next seminar, we will explain the differences between defined benefit and defined contribution pensions. And all the things you’ll need to think very carefully about before making any decisions – things you may have never even heard of.

Read on to find out how you can sign up to attend our straight-talking, informative presentation. If you would like to bring a friend or colleague with you who you believe would also be interested, please confirm their full name as well as your own when you get in touch.

You can find out more about Pen Life here.


14TH MARCH 2019 – 6:30PM


Related Posts

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Cookies Read More