Financial Advice

Defined Benefit Pension Advice

How Can Defined Benefit Pension Advice Help Me?

Understanding defined benefit pensions is vital when preparing for your future. As a deferred member of a defined benefit scheme, you will have built up pension benefits which become payable at the scheme retirement age. This amount if dependent on the salary you had while employed and the number of years you worked for the business. There may also be a scheme accrual rate which is imperative in determining how the number of years’ service and your salary figures are converted into pension benefits.

Under a defined benefit scheme, the pension benefits are payable at the retirement age are fixed by the scheme. If the scheme does not fail, these benefits are to be paid as promised. Transferring out of a defined benefit pension scheme effectively exchanges the future promise of pension benefits for a cash lump sum. This is known as the cash equivalent transfer value.

It is vital to receive define benefit pension advice from a financial adviser as if you decide to transfer your pension benefits, you will no longer be a member of the defined benefit scheme. You cannot transfer back in the future – the decision is irreversible. It therefore needs to be carefully considered, and through KLO Financial Services, you can receive holistic, educational and digestible advice in order to ensure you are making the right decision.

Why is Defined Benefit Pension Advice Important?

A defined benefit transfer should only be considered as part of a holistic review of your overall circumstances and objectives. It’s vital that you have a detailed overview of your finances and future in order to make an educated and realistic decision.

You may consider transferring because you can’t vary the income you take from it, nor draw out larger lump sums. Also, this type of pension cannot be inherited by your beneficiaries. Making the right decision when it comes to deciding to transfer your defined benefit pension benefits is vital. If you make the right decision, the results can be life changing but getting it wrong can create a financial disaster.

What Can KLO Financial Services Help Me With?

Our expert financial advisers have a vast array of experience when it comes to providing defined benefit pension advice. Working with us means that you can rest easy knowing you are making the right financial decision. We can assist you with:

  • Understanding your personal situation
  • Educating you on defined benefit schemes
  • Offering digestible and easy to understand advice
  • Preparing for your future

Why KLO Financial Services?

Our extensive experience in advising individuals across the United Kingdom about their defined benefit pension transfer allows us to deliver effective solutions for an array of objectives. We are always eager and available to meet with you to discuss your financial future. The first consultation is always free and comes with no obligation.

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Frequently Asked Questions

Most defined benefit schemes have a normal retirement age of 65. This is usually when your employer stops contributing to your pension and you start to get paid. However, it’s also possible to take your pension without retiring, or you may even be able to take your pension earlier. Check your existing scheme for full details.

Despite the attractions of a defined benefit pension, in some ways, it is not flexible. For example, you are unable to vary the income you take from it, nor can you draw out larger lump sums. Also, this kind of pension cannot be inherited by your beneficiaries.

As well as this, some providers will offer generous transfer values, and this is often seen as an incentive to switch providers. The choice Is this – have more money to spend now or have a guaranteed income for the rest of your life. Depending o how long you live, this may work in your favour.

No. Not every defined benefit pension is transferable. Private sector schemes and some public sector ones are transferrable but other public sector schemes are supported directly by the taxpayer. This means that you cannot transfer out.

When you transfer out of a defined benefit scheme, you can not transfer back. You, therefore, run the risk of your pension running out meaning you will not be able to support yourself in the future.

We’re Here to Help

Contact Us Today

We are always eager and available to meet with you to discuss your financial objectives and assess your current strategies. No question is too big or too small. The first consultation is always free and comes with no obligation. If you’d like to speak to one of our expert financial advisers, get in touch today.

What Our Clients Say?

KLO Financial Services

I have a had a great experience using KLO, was able to set up a call easily and got some good advice. I spoke with Terry and he was good to talk to so I would recommend giving him a call if this is something you need any help with!

KLO Financial Services

I have dealt with Matt Booton for many years and always had an excellent service and very good relationship.

KLO Financial Services

James provides clear, honest, professional guidance everytime.

KLO Financial Services

I cannot recommend James highly enough. He is completely professional, very knowledgeable, and very pleasant and helpful always.

KLO Financial Services

Steve has been great throughout the process of life assurance and pension switch.

KLO Financial Services

James has been my financial adviser for several years now, and I am continually impressed by his customer care, knowledge of the market, and attention to detail. During our regular face to face meetings, my finances are discussed and reviewed in a clear and practical way. If I have any questions, James is always on hand with easy to understand advice. And every decision we make together is promptly followed up. I can’t recommend James and KLO Financial Services highly enough. They are a company who genuinely care about their clients, and I feel comforted to know my finances are in such safe hands.

KLO Financial Services

I couldn’t be more pleased to have James Glavey at KLO as my financial adviser. He is doing really good things with my portfolio, but above all I trust him to do so and this is paramount for me.

KLO Financial Services

Dan has been ultra professional , explaining all my options in a straightforward way and his customer service and that of KLO has been first rate .

I would highly recommend Dan and the team at KLO.