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Transferring the value of your pension benefits out of the Plan to another pension arrangement can provide you with more choice over how you access your benefits and, as a result, give you more flexibility through your retirement.
There are plenty of things to consider, and it will not be right for everyone. Make sure you know what your options are and how each might affect you, before you make a decision. The best way to do this would be to speak to an impartial financial adviser who specialises in pensions.
Your transfer value is the amount of money that is needed to provide you with the promised pension benefit you have within the Plan. It also includes how much it would cost to provide a spouse’s or partner’s pension and any increases that are built into the Plan rules, so it can be quite a large sum of money.
You can choose to transfer out of the Plan at any time. You do not have to be nearing retirement or even be over 55 years of age, although by law you will not generally be able to access your transferred benefits until you reach age 55.
You can get a transfer value quote directly from Mercer, the Plan administrator.
If you choose to transfer the value of your benefits out of the Plan, you can take your money in a number of ways from age 55:
You can contact Mercer directly and request a quote to be sent to you if you would like to see how much your transfer value is.
If you choose not to do anything between now and when you are due to retire, Mercer will write to you with your retirement statement six months before your normal pension age.
In the end, only you can know if transferring out would be right for you. It will depend on a number of things, but it really comes down to your personal circumstances, your need for flexibility and your appetite for risk.
You should bear in mind that transferring out of the Plan means:
There are a number of options available to you to help you design the income you want when you come to take your benefits. Speaking to a financial adviser is always a good idea when it comes to weighing up all these options and making a decision that’s right for you.
If you would like to transfer out of the Plan and your transfer value is £30,000 or over, the Trustee can only agree to transfer your benefits to a new arrangement if you have taken advice from a qualified financial adviser.
Not only will an adviser help you think through what you need from your income in retirement, but they will explain what you can do with your money in more detail. Find out more here.
If your transfer value is £30,000 or more, you must take advice from a financial adviser before making your decision.
You can find out more about financial advice here.