Defined benefit transfer values hit a new high in November as a result of rising inflation and falling gilt yields.
XPS Pensions Group’s Transfer Value Index saw transfer values hit a high of £270,000 at the end of November on the back of further forecast increases in inflation rates and a slight reduction in gilt yields.
This is slightly higher than the previous record of £265,000 which was hit on October 28 of this year, and is based on the estimated cash transfer value of a 64-year-old member with a pension of £10,000 a year with typical inflation increases.
Read the full article on FT Adviser.
When considering a pension transfer, there may be a thousand questions running through your mind that you want to ask a pension advisor. As experts in pension transfers, we manage and transfer pensions daily for hundreds of clients. With our Pension Transfer Gold Standard award by the Personal Finance Society, we are ideally placed to answer any queries or concerns.
You might have arranged a loan, set up a mortgage, or even set up your own business without any help from a financial adviser. It’s tempting to take that approach to pensions – after all, retirement planning is a personal decision. However, for many people, using the services of a pension adviser can be not only helpful in a pension transfer, but also save money.
Like with any financial product, people have become used to shopping around to get the best deal on their personal pension. The option to transfer your pension has become increasingly popular, to guarantee the best possible rate of return. However, there is so much choice available that it can be tricky to decide on the final defined contribution pension without expert financial advice from an Independent Financial Adviser.
Pension freedoms mean that, yes, you can move your pension at any time to a different provider. There is a lot of pension transfer advice available, and with many providers offering a vast array of products, it can be difficult to pick out which one is really for you.
The workplace pension is something that many people take for granted. You contribute towards it whenever you are paid, your employer might add their own contributions, and you will also be paying into your state pension. You might even have an additional private pension fund you are paying into. However, this is no guarantee that your pension is growing as you expected it to, especially if you have lost track.
Many people choose to transfer their pensions to a new provider if they are looking for pension consolidation, want more investment choice, or if their current pension fund is not offering the best value for money. Combining all your private pensions into a single pension fund could have several advantages, including being easier to manage and keep track. Modern pensions may also give you more choice of investments, which is potentially useful if you want more control (although remember that investment value can go down as well as up).