Should You Transfer Your Company Pension Scheme?

Many people choose to transfer their company pension scheme into a different fund. If you are considering transferring your pension, you will need to research the market carefully and take advice from a pension transfer expert. An independent expert can help you to assess the state of your current pension and suggest a better vehicle for your retirement planning.

What Does My Current Pension Offer?

It's important to sit down with a pension transfer specialist and look in detail at the benefits your current pension scheme offers. If you transfer your pension to a scheme that gives you fewer benefits than your original scheme, then you are reducing the effectiveness of your investment. If, on the other hand, your pensions adviser can find one or more pension schemes that offer greater benefits, or that offer the same benefits, but with better fund management, or lower administration costs, then it will be worthwhile considering the transfer of your company pension scheme into a new plan.

What Is The Current Performance And Value Of My Pension?

Finding out the current performance of your pension scheme is a critical part of the company pension transfer process. This will allow you and your pension adviser to compare your current pension with others on the market, so that you can see which schemes will be most advantageous to you. This transfer value analysis is conducted by computer, and is an excellent indication of how your current plan is performing against others.

How Close Are You To Retirement?

One of the things that defines the value of your pension at retirement is your earnings at retirement, and the fund you have built up in the scheme during your working life. If you are considering a transfer of your company pension and you are less than 10 years away from retirement, you need to consult with your pensions adviser, to make sure that any transfer is genuinely in your interests. By the same token, if you are thinking of taking early retirement, your pensions adviser will be able to tell you which transfer options will ensure a good retirement income.

New rules are being applied to company pensions and private pensions alike, and the regulations are subject to constant change. This is why it's crucial that you talk to an independent expert when you are considering the transfer of your company pension. Getting the right advice from someone who knows the market and is impartial can be the difference between a successful pension transfer and losing your investment.