Do you have a Final Salary (Defined Benefit) pension?

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Choosing the right pension solution for you is one of the most important decisions you will ever make. Get it right, and you can ensure a steady income that will enable you to live out your final years in comfort; getting it wrong can result in financial insecurity at a time when you need it the least.

Given rising life expectancies and the steady increase in the UK State Pension qualifying age, it has never been more important to find a pension solution that will relieve you and your loved ones of the burden of financial anxiety, allowing you to get on and enjoy the important things in life.

Final Salary pensions - otherwise known as Defined Benefit pensions - have long been a part of the pensions landscape. Employers have traditionally offered them to their staff, based on factors including length of service and salary, as a means of rewarding and incentivising hard work and loyalty.

However, the security and long-term viability of such schemes can no longer be taken for granted; high-profile organisations such as the Royal Mail and Barclays are among the many companies that no longer offer Defined Benefit pension plans, leaving long-serving and loyal employees facing uncertainty over their financial future. This worrying trend only looks likely to continue.

Fortunately, many employers keen to withdraw from such schemes are prepared to offer employees a large lump sum, or ‘cash equivalent transfer value’ (CETV) in lieu of a Defined Benefits pension. This money can then be transferred to a pension plan more suited to the individual’s specific needs. It is crucial - and indeed, a legal requirement - that anybody considering transferring out of a Defined Benefits pension seeks financial advice. If you are interested in finding out more, downloading the information pack below should be the first step in your journey towards safeguarding your financial future.

Click here to download your FREE Defined Benefit Transfer guide. 


Reader’s Digest have partnered with pension and investment experts Flying Colours to provide you with the advice you need to identify which option is best for you. Call our pension experts on 0333 241 9919 or click here to visit our dedicated website to help you decide which path suits you best, so you are then able to access the appropriate advice.