There are so many reasons for people to transfer their UK pension fund to a different scheme. Some of them do this as they change their job while others find better pension schemes and would like to try it out. Regardless of your reasons for transferring to a different scheme, it is always important to find out everything that you can about the process to avoid getting the bad end of the deal. Here are a few things that you have to take note of:
• Transfer Value – Your pension scheme will have an equivalent amount for all the benefits that you have accumulated called “transfer value”. This transfer value should be reinvested in a personal or stakeholder pension, a pension scheme with another employer, or a buy-out contract. What you do have to remember is that not all personal pensions, employer pension schemes, or buy-out contracts accept pension transfers, so you would have to verify this first.
• Transfer Incentives – There is a possibility that your employer will offer an incentive to have you transfer out of a benefit pension scheme. This could involve an enhanced transfer value, or an additional payment in cash on top of the transfer value. You may see the total value as attractive, but you would have to be careful. You may have to pay National Insurance and Income Tax if you do this. The total pension you will be receiving in the future may also be less should you decide to accept the incentive.
These two points are definitely things that you couldn’t possibly think about on your own. If you are considering a pension transfer, it is best to consult experts such as Tim Carroll UK Pension Transfer. Tim Carroll UK Pension Transfer LLC could help you make the decision that would leave your future more secure than ever.