Pension transfers, personal pensions for the self-employed, changing jobs, made redundant, new pension scheme are all possible reasons to transfer your pension fund

Pension Transfers

Ask yourself the question, 'When was the last time I had a proper look at my personal pension arrangements?" Many of us, fail to review our plans once pension has been set up and it can come as quite a shock to find it has been in a poor performing fund for many years or a provider that has closed to new business, which is more than likely bad news. Transferring your pension could create you more wealth. So what should you do next?

Start of article about pension schemes.

Take advice

Unfortunately, just about everyone is likely to experience this predicament at some point during his or her working life. If you fall into one of the categories below, then you should consult an independent financial adviser without delay. It can happen if:

• You change jobs
• Become self-employed
• You are made redundant
• Your employer introduces a new type of scheme after a takeover or merger

Transfer minefield

Are you scared of doing something in case it is not the right move? What if you jump out of the frying pan into the fire?

This needs professional analysis not least of all so as to make sure you do not inadvertently lose an irreplaceable benefit e.g. guaranteed annuity rates.

The Financial Services Authority has recently stated that people ought to receive advice before transferring their pension fund – particularly from a final salary or defined benefit arrangement. To arrange a free no-obligation discussion with a pensions consultant, please click here.

Tax advantages

Contributions receive tax relief at your highest rate. This means that if you are a higher rate taxpayer, you need contribute only £60 of your own money to get £100 invested, thanks to the £40 you will get back from the taxman. Basic rate relief is credited to the fund, while the higher rate relief has to be claimed back from the Inland Revenue.

Diversified assets

You can actively choose where your money is invested but few people feel confident enough to take this rather daunting task on, so we can help and guide you with the investment decisions. Your contributions can purchase investments over a wide variety of assets, which could include insured funds with different investment providers, direct investment into shares, open-ended investment companies, unit and investment trusts. Another investment could be the purchase of a property to use as your office and then rent it back to yourself. This provides you with an unparalleled choice in creating your own pension portfolio.

SIPPs offer tremendous investment flexibility, enabling a very personalised portfolio to be created that has the ability to change the investment strategy quickly. In practice though, this route is rarely used except for a small percentage of generally wealthier people.

Self-Investment Personal Pensions (SIPP)

Pension transfers, personal pensions when going self-employed, changing jobs, being made redundant, your company introduces a new pension scheme are all possible reasons to transfer your pension fund