Navigate Final Salary Pensions

A final salary pension - sometimes called a defined benefit scheme or a salary related scheme - is a plan that provides retirement benefits based on your final salary and length of time in the scheme, instead of an amount you and your employer have contributed to a pension fund. 

In recent years, many final salary schemes have been closed to new or all members, but some large companies still offer them. 

Final salary pensions are determined by certain rules, with benefits set by the scheme, but there is usually some flexibility around the ability to take a lump sum. 

This type of plan can provide an excellent pension once you retire, but they are not suited to everyone’s retirement plans or financial goals. In these cases, some people choose to transfer their final salary pension, but it is strongly recommended that you seek expert financial advice to fully review whether its is the best option for you. 

At Navigate Wealth, we put your needs at the centre of everything we do - meaning we will always do what is best for you. 

If you want to speak to an expert about reviewing your final salary pension, or to arrange a free consultation, contact the Navigate Wealth team on 0345 340 9690 or use our submission form.

What are my options? 

If you are a member of a final salary (or defined benefit) pension scheme you have alternative options to the scheme pension.

Options if you are under age 55:

• Remain in the scheme and take no action
• Request a transfer value from the scheme
• Transfer to a private pension plan

Options if you are over 55:

• Remain in the scheme and take no action
• You may be able to take benefits directly from the pension scheme
• Request a transfer value from the scheme
• Use the transfer value to purchase an annuity type product
• Use the transfer value to transfer to a private pension plan
• Use the transfer value to transfer and take benefits from the fund
• Use the transfer value to take the entire fund as a lump sum

Should I transfer my final salary pension?

If you are a deferred member of a final salary scheme with a private company, or in a funded final salary scheme, you have a legal right to transfer and can apply for a cash equivalent value transfer (CETV) - but transferring may not be your best option. 

Deciding whether to keep or transfer a final salary pension is a huge commitment. Making the right decision can allow greater flexibility in when you retire and generate you a significant retirement income; but the wrong decision could see you spend your retirement money too soon and not have any income in later life.

What does a review entail?

Reviewing your final salary pension scheme can be an overwhelming process, but a Navigate Wealth adviser can expertly guide you through the review, taking hassle away from you where possible. 

In the first instance, you might find it useful to share with us an idea of what you’re looking to achieve from the review, and your plans in retirement in the long term, so that we can make an initial assessment on whether your circumstances meet our criteria. 

From that point, we will send you a review pack to gather the necessary information about your pension and priorities. We will then be in a position to review your plan, and provide you with a detailed report of expert, independent advice before helping you proceed with our recommendations. 

Contact us

Transferring a final salary pension is an irreversible decision, which is why it is strongly recommended that you seek the help of a quality, independent financial adviser to help you review your plan before deciding. 

To find out more about transferring your final salary pension, or to arrange a free consultation, contact the Navigate Wealth team on 0345 340 9690 or use our submission form.