“Getting an End-of-Service Benefits solution in place, that was sufficient to meet future needs, was a headache hanging over me. AES took the entire problem, solved it and delivered my company a total solution. Highly recommend - and actually, I already HAVE recommended AES.”
“We had a corporate pension solution in place, but it wasn’t sufficient to meet the needs of our key personnel. AES have created a solution, set it up, and they manage the ongoing investment side of things too. All in all – a highly professional service.”
“As a company, we spent a lot of time researching the right partners for corporate investment and financial management. We were so impressed with the key team at AES International when we met them that they made the job of choosing simple in the end.”
Possible reasons to consider a final salary pension transfer include:
It is very rare that any of these is over-riding. There are many considerations, and these are just a potential starting point.
Avoid transferring for the following reasons:
There may be many good reasons, depending on your circumstances. If the value of your transfer would be £30,000 or more you cannot transfer without advice from someone authorised by the FCA.
The biggest questions to ask yourself:
If you transfer, are you still covered for the full duration of your retirement? What are the aims
If you are approaching retirement we find the use of a cash flow forecast or plan may help answer some of these key questions.
3 more general things to watch out for include:
Transfer values are only available to "deferred members" of final salary pension schemes. This means you've left the company, or are about to leave, but have yet to start your pension. Once a final salary pension is in payment it cannot be transferred.
The pension transfer value will depend on your age, the level of forecast pension when you retire, your retirement date and how generous the annual increases are on your pension both in deferment and when it gets paid.
You can ask your old employer/pension scheme for a transfer value which will usually take a few weeks to arrive.
A key element of the decision to transfer from a defined benefit pension is how your pension fund will be invested after the transfer. In particular:
To get in touch:
Our dedicated pension transfer team of advisers, paraplanners and administrators understand the importance of meeting the expiry date deadline on your defined benefit pension transfer offer.
Our aim is to deliver your advice and detailed recommendation report four weeks before your pension transfer offer expires.
This gives you time to ask and questions, consider your decision, speak with other professional advisers and submit your paperwork with plenty of time to meet your offer deadline.
A full list of different options is available on request. All fees are transparent and payable in advance.
This is important because not all companies are transparent about their fees.
One of the UK’s largest wealth management company in particular markets defined benefit pension transfer advice without any initial charge to your fund if you transfer with them. However, their pension platform charge at 1% p.a. is five times the UK norm for a secure pension platform and this margin allows them to fund 4.5% up front payments to individual advisers, protected by a 6% exit fee if you try to move your funds within one year of the pension transfer. Such exit fees apply for six years on a sliding scale to ensure the company is never out of pocket. Total ongoing fees for this company will typically be over 2% p.a.
Not all companies are as cheap as they appear.
Another of the UK’s largest wealth managers appears on the face of it to be a low cost execute yourself platform, however invest via one of their managed fund of fund portfolios which now hold billions of pounds and total fees for the platform at 0.35% for a £500,000 account and funds an 1.46% OCF for their multi manager balanced portfolio. 1.81% in total and without any advice. Advice from this company is paid for separately on top of the fees above.
In making any comparisons with other companies we strongly advise you to ensure that you get all the fees and costs disclosed and that you are comparing apples with apples in terms of the services provided.
Our fee for conducting the analysis and providing advice on the merits of a potential transfer is not contingent upon a transfer.
The fee is payable whether or not a transfer is recommended.