A final salary (defined benefits) pension is one that promises to pay an income in retirement based on your earnings and length of service.
If you have a final salary pension and are considering transferring your pension fund somewhere else, there are some important things you should consider as you will be giving up valuable benefits. The government insists that appropriate financial advice from a suitably qualified adviser must be taken before you can transfer your final salary pension(s) with guaranteed benefits worth £30,000 or more.
The value of investments can go down as well as up, so you may get back less than you invest. You will not be able to withdraw money from a pension until you reach age 55.
If you want to transfer your final salary pension into a Fidelity SIPP, we believe it is very important to ensure it is in your best interests to do so. Therefore, we will only accept final salary transfers if you have taken appropriate financial advice and the advice confirms that it is in your best interests to transfer.
You can get personal retirement advice from Fidelity’s retirement service at a low cost fixed fee. The recommendation will be based on careful financial analysis of the value of your transfer in relation to your personal circumstances and objectives. If the research concludes your transfer value isn’t offering fair value and/or transferring isn’t right for you at this time they will advise against a transfer and Fidelity will not therefore accept the transfer.
The advice fee will apply, regardless of the outcome. You will however receive a Financial Advice Certificate which may enable you to release your transfer to an alternative SIPP provider if you still wish to proceed against Fidelity’s advice.
Alternatively you can get advice from an appropriately qualified financial adviser of your choosing and submit confirmation from your adviser that you have received appropriate transfer advice. We require that this advice confirms it is suitable for you to transfer your benefits from your current pension scheme to a flexible benefit arrangement.
Call us on 0800 368 6882
The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.pensionwise.gov.uk or over the telephone on 0800 138 3944.
The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s Retirement Service on 0800 084 5045 or refer to an authorised financial adviser. Pension money cannot usually be withdrawn until age 55.