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Many pension schemes looking to transfer members elsewhere

There is an interesting trend developing in the UK pension market where a number of final salary/defined benefit pension funds have been trying to tempt members to transfer elsewhere with increased transfer values and cash payments. These offers are in line with the UK guidelines and can offer interesting returns in the short term, but why are UK pension funds looking to transfer people away from their fund?

In simple terms these pension funds have done their calculations and realised that in the future the liability attached to each and every member will increase so by reducing member figures today they can reduce their overall liability into the future. So what do you do if you receive such an offer?

While many people may be tempted just to accept the transfer and move on there is most certainly a requirement to take professional advice as what is good for you in the short term may not be so good for you in the long term. Pension funds and pension fund benefit calculations can be very complicated and unless you are aware of the full picture they can be difficult to understand. It is essential that professional advice is taken at the first opportunity to ensure you are doing the right thing both now and for the future.

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