Pension transfers: Top five things clients must consider

Food for thought before cashing out

Jenna Towler
clock • 5 min read

As the controversy surrounding British Steel Pension Scheme transfers grows, PA looks at the top five considerations clients should factor in before leaving a final salary scheme...

Recent Financial Conduct Authority (FCA) research revealed more than half (53%) of retirees who accessed their defined contribution (DC) pensions chose to withdraw their entire pension pot.  Of these fully withdrawn pensions, 52% had been transferred into other savings or investments, thereby losing the valuable tax benefits available in the pension scheme which cannot be replicated, for example, in deposit accounts. According to the FCA, accessing pension pots early has become ‘the new norm' with almost three quarters (72%) of pensions being accessed by individuals under age 65, and ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

'Urgent action' needed on Gen Z pension saving barriers: PPI report

'Urgent action' needed on Gen Z pension saving barriers: PPI report

Generation faces retirement challenges

Jasmine Urquhart
clock 26 February 2025 • 3 min read
Advisers concerned about regulatory scrutiny in decumulation phase

Advisers concerned about regulatory scrutiny in decumulation phase

Retirement planning ‘dominates’ client advice requests

Isabel Baxter
clock 27 November 2024 • 3 min read
Advisers call for new products to tackle retirement planning challenges

Advisers call for new products to tackle retirement planning challenges

Retirement products ‘don’t meet modern needs’

Isabel Baxter
clock 25 November 2024 • 3 min read