Should you Take the Money?

October 12th, 2016

People with accrued pension rights from former employments are increasingly receiving offers to take a lump sum transfer value in exchange for the lifetime income promised by their old pension scheme.

Employers running these schemes want to reduce their long-term liabilities, and can do so by handing that responsibility over to former employees along with a sum that can be transferred to a free-standing pension fund. Should you take the money? asks the Mail. It can seem a lot – typically it will be about 20 times the pension income if its fixed or as much as 38 times if the pension is index-linked. But if you take the money, you also take on the risk that it might run out before you do. Good advice is essential.

If you have a final salary pension and you’re looking for Independent Financial Advice, feel free to give us a call on 02380 222444.