British businesses are reporting a surge in demand from current and former staff who want to swap their “final salary” pensions for cash.
Half of the 182 employers surveyed by the Association of Consulting Actuaries, a trade body, said they had received transfer request from at least 5pc of scheme members.
Growing numbers of savers are seeking to move their pensions final salary schemes to “defined contribution” plans because of the extra flexibility afforded and superior tax treatment on death.
It is thought more than £50bn has been taken out of final salary schemes over the past two years, with the average transfer exceeding £250,000.
This suggests that the option is being used by better-off employees or past employees.
The number of members researching this option has increased tenfold and the timescales for such transfers has increased significantly.
If you have a final salary pension what should you do?
- Get all relevant information together.
- Contact Broadleaf Financial Services
- Talk to a professional advisor about your options.
- Don’t wait!