We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here.

Should I transfer funds from a final salary pension?

Which? Common Money Problems Solved - November 2014

goldfish jumping from one bowl to another

In this new series, we share recent questions about money and the answers provided by our experts on the Which? Money Helpline.

Our experts have taken a number of calls in the last month from people who are considering transferring from a final salary scheme to a defined contribution scheme to take advantage of the new pension rules being introduced next April.

This would allow them to select their own method of generating retirement income, rather than accept the guaranteed annual payment provided by final salary schemes.

Which? chief money adviser, Rebecca Fearnley said: ‘It is not usually a good idea to transfer out of a final salary scheme, other than in some quite specific circumstances, and we would certainly suggest no-one consider it without taking financial advice from an adviser specialising in this area.’

The range of new options for securing a retirement income announced in this year’s budget have led to pensions becoming one of the most popular subjects for callers to the Money Helpline.

Which? has a guide to company pensions

And a series of guides to help you navigate your options from the new pension changes
What the pensions changes mean for you
Income options under the 2015 rules
How much do I need to save in my pension?

Other common pension queries

Our money experts continue to hear from members who want to know whether they can cash a pension if they have already arranged an annuity. The answer is no, as the decision to buy an annuity remains irreversible.

Find out more: Annuities explained – the pros and cons of buying an annuity 

Many callers are keen to hear about the pros and cons of deferring their state pension and who will be affected by the change in rate. If you are already deferring your state pension, the rate you are getting will be unchanged.

Find out more: Is it worth deferring your state pension? – we describe your options

The Which? Money Helpline is a free service for all Which? members, providing one to one help and guidance on any personal finance matters over the telephone. If you’re not a Which? member, and you’d like to speak to one of our money experts, you can subscribe today for just £1 for one month.

More on this…

Back to top
Back to top