JUICY LOTTERY- sums are being offered to savers to tempt them out of gold-plated workplace pension schemes and into personal plans.
An example is Mrs Dee (not her real name), 4 years ago she asked for her final salary transfer value and it came in at £250,000, a nice sum you may think. Well after reviewing all the facts and figures available I advised Mrs Dee to leave her final salary where it was. Which she duly did, but towards the end of last year, because of favourable market conditions I applied for another transfer value. This came in at just under £600,000.
So instead of waiting until she was 60 (over 10 years away) for a guaranteed annual pension of £15,000, Mrs Dee decided to transfer out of her final salary scheme and move the £600,000 (40 times her £15,000 guaranteed annual pension) to a QROPS.
Reason for transferring: Her main reasoning behind this, was that she wanted the flexibility to be able to leave her pension to whoever she wanted on her death, her children and husband, under the final salary scheme her husband would have just received half of the £15,000pa. She also wanted when she reached 55 to be able to access her pension if required and to be able to take out varying amounts if and when required.
The demand for transferring workplace pensions into private arrangements has shot up since new pension freedoms were introduced two years ago and the temptation to switch has grown in the last year as transfer values have soared to record levels.
The reason pension transfer values have soared are twofold, firstly a combination of rock bottom interest rates and gilt yields mean Pension Members are being offered a multiple of their promised income at retirement. This is usually between 20 and 25 times. But since the Brexit vote, multiples of 30 or above are not untypical.
These record transfer values will not last if interest rates rise.
Act now and you too can take advantage, before you start taking your pension speak to Blacktower. Opportunities like this don’t come along more than once in a lifetime!
If you would like more information on this or any other financial advice please contact me by email [email protected] or call me on 658 892 330.
Blacktower can also help you track lost pensions, including personal pensions or occupational pensions and schemes used to “contract out”. If you have lost touch with a pension scheme since moving to Spain we can contact them on your behalf in order to find out what your pension entitlement may be.
The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.
Blacktower Financial Management Ltd is authorised and regulated in the UK by the Financial Conduct Authority and is registered with both the DGS and CNMV. Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with both the DGS and CNMV in Spain