Workplace pensions run in conjunction with any private and/or state pension you may have.
There are two main types of workplace pension:
Defined Benefit (DB) schemes. These are also known as Final Salary schemes.
Defined Contribution (DC) schemes. These are also known as Money Purchase schemes.Defined Benefits (DB) schemes offer the benefit of a guaranteed income for the rest of your life but no choice on how your pension is invested. Defined Contribution (DC) schemes offer no guaranteed pay-out but more flexibility and are cheaper for employers to run than DB schemes.
Final salary or defined benefit company pension schemes have become less common due to he burden on employers of running these schemes. After 2012, if you’ve signed up somewhere to work, that provides a company pension, you will have been automatically enrolled onto a Defined Contribution pension scheme.
There are specific pension transfer rules which make these types of pension difficult to transfer yourself, without the help of an adviser
If your final salary pension is worth more than £30,000, then under pension transfer rules, you must by law seek regulated financial advice before you transfer it.
You must also get professional financial advice if you have a defined contribution pension, worth more than £30,000, which comes with a guaranteed pension at retirement.
Whichever pension you have, whether a pension transfer is right for you or not, is an individual decision which should be made after reviewing detailed information based on your present set-up and you and your family's future requirements.
Contact me. I will be happy to conduct a free review of your current circumstances and help with whatever questions you may have.
Rob
E: robert.gourlay@holbornassets.com T: (+6) 01151565649 W: www.rgwealthsolutions.com
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