Pension dilemma is cash-in tomorrow or today

Would you prefer to receive £300,000 today or £10,000 a year for the rest of your life?

While there is no right answer, this is a similar dilemma faced by many Britons with ‘final salary’ pensions. These ‘gold-plated’ pensions are where employers pledge a minimum income throughout retirement, plus yearly cost-of-living increases.

But today many pension providers are offering non-retired members high pay-outs – ‘transfer values’ – in exchange for giving up future benefits.

Whether you plan to spend your retirement years in France or return to the UK, it is important not to rush into a decision and to take extreme care. Here are key questions to consider.


What is your pension worth?

Is it enough to provide for your retirement? A final salary pension worth £15,000 a year seems modest, but with transfer values at an all-time high of up to 40 times the income due, this could represent a pay-out of over £500,000. Properly managed, this could provide a retirement income that well exceeds the original annual payment.


Do you have other resources for retirement?

Is your transfer value high enough to outweigh the benefits of a guaranteed income for life? Or will other pensions, savings and investments provide for your future? If ...

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