84. Final Salary Pension: To Transfer or Not to Transfer? (pension mini series 5)

Women & Money Cafe

In this episode, we're diving into the controversial topic of what to do with a final salary pension. Many personal finance forum posts claim that providers require a letter from a financial advisor in order to transfer a pension, yet advisors seem unhelpful or charge a lot for the required letter. To help us understand this process, I'm joined by Michelle, a pension expert who will provide insights on the topic.
Michelle talks us through exactly what's going on with these pensions. And we touch on the cash equivalent transfer value (CETV) and how it's calculated. While the CETV can be appealing, Michelle cautions that transferring the pension to another scheme can involve investment risk, charges, and the possibility that the pension could run out. In contrast, staying with a final salary scheme offers cast-iron guarantees.
We also discuss scenarios where transferring a pension may be appropriate, such as when you have other guaranteed sources of income or in ill health. However, advisors need to do a lot of background and data gathering before signing the letter required by providers, as it holds a lot of responsibility for saying that the transfer is the right thing to do. Most generally advise against moving transfer values for those under 50 years old, as too much can happen between then and retirement.
Throughout the episode, Michelle offers valuable insights into the pension transfer process, and we cover a range of situations that might influence someone's decision when it comes to a final salary pension.
As always, we're here to educate and inform - it's important to remember that the podcast does not constitute personal financial advice. If you have any questions or want to learn more, we recommend reaching out to Michelle on Instagram at Michelle Lambel Money or your financial advisor. Thanks for tuning in, and don't forget to take care of yourselves!
02:29 "Pension Transfer Advice: Qualifications and Regulations Explained"
05:26 "Understanding Final Salary Pensions: A Gold-Plated Guarantee"
12:28 "The 12-week window for pension transfer values"
14:58 "Empower Women Financially: Share This Episode Now"
21:46 "Scenarios for Transferring Pensions: When to Consider"
26:27 "Customizing Your Retirement: Options and Considerations"
29:09 "Contact Michelle for Final Salary Pension Questions"

YOUR HOST

Julie Flynn is an experienced independent financial adviser and financial coach. Justice and equality drive Julie. Which is why she’s spent years studying and researching how stress affects our financial decision making.

Julie is best known for her work with women who have lost their partner and coaching financial services business who want to implement fair and transparent charges.
Ebb & Flow Financial Coaching | Bree Wealth & Tax | Instagram
CO-HOSTS
Michelle Lambell started her career in financial services as a Stockbroker in 1999 undertaking both advisory and discretionary investment management. Today she is a Chartered Financial Planner, specialising in retirement planning advice, pensions and investments and a Certified Financial Coach.

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