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Pension Transfers
This is a complex area.
There are a number of different types of pension arrangement. Different rules and regulations apply to each and it is therefore essential that a full review is undertaken in order to establish the benefits accrued under each of your pension 'pots'.
The amount of work that Barnett Waddingham Investments will need to undertake before a pension transfer proceeds depends on the type of pension arrangements that are involved. For example, a transfer from one money purchase pension plan, such as a personal pension, to another personal pension plan is a more straightforward exercise than, say, a transfer from a defined benefit final salary scheme to a personal pension plan.
Our service
A transfer analysis in respect of a final salary scheme will investigate the merits of transferring the scheme benefits to an alternative pension arrangement, or leaving them where they are. The findings will be laid out in a thorough report. The analysis will involve:
- Comprehensive summary of existing benefits.
- Determining the investment return needed on the transfer to reproduce the final salary benefits given up.
- Consideration of early retirement benefits, ill health benefits, death benefits and discretionary benefits under the final salary scheme.
- Consideration of the financial position of the final salary scheme.
- Consideration of your own attitudes, circumstances and financial position.
- Consideration of any pension arrangement offered by your current employer.
- Consideration of the recommended pension arrangement, provider and investment fund to receive the transfer payment, if appropriate.
A transfer analysis in respect of a money purchase pension will investigate the costs, terms and investment funds of the current arrangement relative to alternative pension policies. Where the existing pension pot is invested in with-profits, it may not be possible for us to carry out a meaningful analysis - we would talk this through with you at the outset.
Our costs
The costs will depend entirely on the nature of the transfer. We will be able to provide you with an indicative budget once we have had the opportunity to review any paperwork that you are able to provide us with.
If you wish to proceed
Should you wish to instruct Barnett Waddingham Investments to undertake this work on your behalf, the following paperwork will be requested:
- A Terms of Business letter: Two copies will be sent to you, one copy for your own records and one to sign and return to Barnett Waddingham.
- A Retirement Options Fact Find: This summarises the information we need to undertake a full review of your personal circumstances, and to provide a report on the range of options available to you at retirement.
- Verification of Identity.