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Final Salary Pension Transfer offer final salary pension transfer / DB pension transfer guidance to all UK citizens. We assist you with obtaining specialist independent financial advice which helps you to make that very important decision about your future income pension wisely.

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    Reasons not to transfer out of a final salary pension scheme

    It is possible that you may, in the long term, be financially disadvantaged following any transfer of your final salary benefits.

    The disadvantages of transferring your final salary transfer benefits are detailed below and whilst this list is not exhaustive careful consideration should be given to the final salary benefits that you may be giving up if you were to do a final salary transfer.

    The benefits shown in final salary scheme documentation you may have received with your CETV are those you are specifically giving up.

    Should you have any questions or there is anything you do not understand on the detail within your ceding scheme documentation, please ask.

    Reasons NOT to transfer include, but not exclusive:


    • Loss of a guaranteed income for life from the transferring scheme
    • Loss of guaranteed indexation of income from the transferring scheme
    • Loss of guaranteed spouse’s income for life from the transferring scheme. Even if you are single these benefits apply at death which may be different to your circumstances now
    • Possible loss of lump sum death benefits
    • Possible loss of dependents pension. Even if you do not have children or dependents these benefits apply at death which may be different to your circumstances now
    • Loss of protection from the Pension Protection Fund (PPF) detailed above
    • Possible loss of discounts from certain stores as a member of your current
    • Possible loss of free membership to clubs
    • Loss of future possible ad hoc pension increases from transferring scheme
    • The investment risk on transfer will be borne by yourself and not by your employer, therefore, if investments suffer a significant fall you would lose the guarantee from your current employer who would have had to make good any losses. You would also lose any potential protection on offer from the PPF
    • The impact on your access to state benefits.

    Please refer to your ceding scheme documentation, including past benefit statements and statement of deferred benefits for the exact benefits you would be giving up if you were to do a Final Salary Transfer.

    The following statutory risk warnings relevant to the transfer of any Defined Benefit Pension Scheme are:

    • This investment is intended as a long-term investment and under current HM Revenue & Customs’ practice it is not normally possible to access the fund(s) prior to the age of 55. The minimum age will increase to 57 from 2028 with further increases as the State Pension Age goes up.
    • Your eventual income in retirement may be less than that which would have been available under your previous employer’s arrangement.
    • If you are not in good health at the time of the transfer and should die within the 2 years following the transfer, it is possible that some or all the death benefits from this plan could be included in your estate for inheritance tax purposes.
    • If your employment status changes, we would recommend that your retirement planning is reviewed.
    • All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. The level and bases of tax relief are subject to change.
    • This type of transaction is irreversible.
    • If you change your mind, there is no requirement for the ceding scheme to accept the funds back.
    • Full details of all safeguarded benefits / options being given up are shown in the ceding scheme details provided by your TPA, copy attached.
    • There may be implications of creating a lifetime allowance that do not previously exist
    • There are implications of the transfer not being completed within the given timescale i.e. a new transfer value will need to be requested / the revised figure may be lower than the original figure (especially if the transfer value has been enhanced) / the ceding pension scheme may charge for the new calculation
    • The final transfer value may be affected by any fund deficit
    • It is possible you may not be able to obtain the same level of life cover to replace the ceding scheme’s lump sum death benefits
    • In view that transferring pensions can be a lengthy process, the existing and new funds may fluctuate during the process and a loss may be suffered as a result
    • There is the potential risk of running out of funds, therefore not receiving the same level of benefits being given up
    • With the uncertainty of the level of benefits that can be obtained from the purchase of a future annuity – the eventual income at retirement may be less that it would have been under the original arrangement
    • The investment risk you are exposed to until an annuity is purchased with the proceeds of the proposed pension scheme
    • The potential lack of availability of annuity types to replicate the benefits being given up
    • Any penalties which might be imposed on the funds being transferred
    • The implications of the fund becoming subject to investment risk following the transfer
    • Implications of not completing an ‘expression of wish’ or a ‘death benefit nomination’ form which we strongly recommend you do

    What is the difference between ‘Active’ and ‘Deferred’ final salary pension members?

    Reasons to transfer out of a final salary pension scheme