Top Tips For Pension Transfers!
Elizabeth Grant
If you’re considering a pension transfer, then these tips could
help you in the transfer process.
1.Find an Independent Pensions Transfer Advisor
Pensions law and regulation is so complex and changes so rapidly,
that you really do need good advice when it comes to transferring
your pension. An independent advisor isn’t tied to any particular
product, and has access to all the information you need to make
an informed decision. In addition, they will be aware of the
latest changes to the pensions regulations, ensuring that your
transfer falls within the rules. They can check the current value
of your existing pension and compare it to the performance of
other similar schemes on the market. Don’t transfer your pension
without consulting an expert.
2.Check Benefit Levels
Each pension scheme has a different level of benefits. Whilst
some are very generous, others are not, and you want to be sure
that you are transferring to a pension that has equally good, if
not better, benefits than your current scheme. Your pensions
advisor can help you to check benefits levels and talk you
through which are the most important to hold onto.
3.Growth Levels
If you are transferring a pension, there may be a period where
the new scheme needs to grow to the size of your original pension
fund. For this reason, you should ask your pensions advisor to
check growth levels to see which funds are likely to return your
investment to its current level the quickest.
4.Nominations
Make sure that you can nominate one or more beneficiaries for
your pension scheme and that the pension fund manager will honour
your nomination. If you die before retirement, your pension
entitlement will be paid to your nominated beneficiary or to your
estate. To make sure that your pension goes to the people you
want it to, your nominations need to be accurate and, if
necessary, you should reinforce them in your will.
5.Retirement Age
If you are transferring your pension less then 10 years before
retirement, make sure that your new scheme gives you the same
rights as your old one. If you are intending to retire early, ask
your pension advisor to check the value of your existing scheme
and the scheme you want to transfer to. This will help you to
ensure that you have a good income on your retirement.
6.Management Fees
The pensions industry is competitive and one of the key areas
where pensions schemes compete is the management fee. This fee is
usually applied annually and is calculated as a percentage of
your funds. Many people choose to transfer their pension in order
to obtain a lower management fee, so you should make sure that
the scheme you choose has a management fee you are happy with.
7.Review
If you are considering transferring your pension, ask a pensions
advisor for a review of your current situation. Once you have
transferred your pension, it may be worth asking for a regular
review, particularly as you approach retirement age, so that you
can be sure that your pension is working for you.
8.Administration
You will need to ensure that you have all the paperwork relating
to your existing pension scheme before you transfer. This
paperwork is important when it comes to any contact you have with
the company operating your pension scheme, and your pension
advisor will need it in order to effect the transfer. Similarly,
when you get the paperwork for your new pension scheme, keep it
in a safe place so that you can access it easily when you are
coming up to retirement.
9.Target Income
If you are transferring your pension scheme when you are still a
long way from retirement, you may want to look at the level of
contributions you are making. Talk to your pensions advisor about
your desired target income, which will help them to work out the
payments you need to be making into your new pension scheme.
Elizabeth Grant has been in the finance industry for more than 20
years and writes exclusively for http://www.the-mortgage-
broker.ltd.uk specialist mortgage websites. To read more of
Elizabeth’s articles on Pension Transfers please visit
http://www.pension-transfers.com
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