‘We recently had some advice from Andy; he came to our home listened to what we wanted, didn’t try and sell us anything else, found us what we were looking for and he didn’t charge us for an appointment. Now, because he was so good, we’re looking at arranging our mortgage with him. I can’t recommend him highly enough.’
How Can Defined Benefit Pension Advice Help Me?
Understanding defined benefit pensions is vital when preparing for your future. As a deferred member of a defined benefit scheme, you will have built up pension benefits which become payable at the scheme retirement age. This amount if dependent on the salary you had while employed and the number of years you worked for the business. There may also be a scheme accrual rate which is imperative in determining how the number of years’ service and your salary figures are converted into pension benefits.
Under a defined benefit scheme, the pension benefits are payable at the retirement age are fixed by the scheme. If the scheme does not fail, these benefits are to be paid as promised. Transferring out of a defined benefit pension scheme effectively exchanges the future promise of pension benefits for a cash lump sum. This is known as the cash equivalent transfer value.
It is vital to receive define benefit pension advice from a financial adviser as if you decide to transfer your pension benefits, you will no longer be a member of the defined benefit scheme. You cannot transfer back in the future – the decision is irreversible. It therefore needs to be carefully considered, and through KLO Financial Services, you can receive holistic, educational and digestible advice in order to ensure you are making the right decision.
Why is Defined Benefit Pension Advice Important?
A defined benefit transfer should only be considered as part of a holistic review of your overall circumstances and objectives. It’s vital that you have a detailed overview of your finances and future in order to make an educated and realistic decision.
You may consider transferring because you can’t vary the income you take from it, nor draw out larger lump sums. Also, this type of pension cannot be inherited by your beneficiaries. Making the right decision when it comes to deciding to transfer your defined benefit pension benefits is vital. If you make the right decision, the results can be life changing but getting it wrong can create a financial disaster.
What Can KLO Financial Services Help Me With?
Our expert financial advisers have a vast array of experience when it comes to providing defined benefit pension advice. Working with us means that you can rest easy knowing you are making the right financial decision. We can assist you with:
- Understanding your personal situation
- Educating you on defined benefit schemes
- Offering digestible and easy to understand advice
- Preparing for your future
With KLO Financial Services, we can help you explore your full range of options, as a defined benefit transfer should only be considered as part of a holistic review of your overall financial circumstances and personal objectives. We know that every individual’s financial situation is unique, and this will affect the pension path you decide to take. We will tailor our solutions to your specific immediate and long-term plans.
Without thorough knowledge of the financial horizon and defined benefit schemes, you may make a decision without fully understanding the implications of that decision. We want our clients to have knowledge of their pension schemes and the financial landscape. We, therefore, take the time to teach you all our processes and ensure that you are fully informed at all touchpoints in your journey.
With KLO Financial Services, you receive direct access to our highly qualified team of specialists who are experienced in dealing with complex financial affairs. With a broad knowledge of the financial market and the defined benefit pension landscape, we can keep you up to date with any changes that may impact your decision. If you have any questions, our expert team are always on hand to help.
Most defined benefit schemes have a normal retirement age of 65. This is usually when your employer stops contributing to your pension and you start to get paid. However, it’s also possible to take your pension without retiring, or you may even be able to take your pension earlier. Check your existing scheme for full details.
Despite the attractions of a defined benefit pension, in some ways, it is not flexible. For example, you are unable to vary the income you take from it, nor can you draw out larger lump sums. Also, this kind of pension cannot be inherited by your beneficiaries.
As well as this, some providers will offer generous transfer values, and this is often seen as an incentive to switch providers. The choice Is this – have more money to spend now or have a guaranteed income for the rest of your life. Depending o how long you live, this may work in your favour.
No. Not every defined benefit pension is transferable. Private sector schemes and some public sector ones are transferrable but other public sector schemes are supported directly by the taxpayer. This means that you cannot transfer out.
When you transfer out of a defined benefit scheme, you can not transfer back. You, therefore, run the risk of your pension running out meaning you will not be able to support yourself in the future.
We are always eager and available to meet with you to discuss your financial objectives and assess your current strategies. No question is too big or too small. The first consultation is always free and comes with no obligation. If you’d like to speak to one of our expert financial advisers, get in touch today.
‘John Glavey has successfully managed my pensions and investments for more than 20 years. Despite turbulent financial times I have been extremely pleased with the performance I have received and the service that John has given me.’
‘Andy Green has been our IFA since 2013 when we needed investment advice for parents who were downsizing their home. Andy’s advice has seen their investment grow while safeguarding it for the future. Due to the great service, my parents received we now use Andy and KLO Financial Services for our own investments and pension, which have performed exceptionally well over the last 12 months.’
‘Having worked for a high street Bank for 35 years, I was extremely cautious with regard to my choice of financial advisor. At the top of my list was a high level of personalised service, personal and professional integrity coupled with extensive industry knowledge. As such I am delighted to have chosen KLO and to be supported by such professionals as Ellis Smith, Hilary Erenler and Andrew Green.
Life changing financial decisions are not made lightly and my trust and advocacy is not easily won. Ellis, Hilary (Hils) and Andrew now have my complete confidence and I am delighted to recommend them to anyone seeking holistic financial advice in the short, medium and long terms.’