What to consider before deciding on a Defined Benefit (DB) Pension Transfer?
Ultimately, your own personal circumstances will determine whether it is a good idea or not for you to transfer your benefits out of a Defined Benefit scheme.
To make an informed decision, a full analysis of your situation will need to be conducted. Key considerations typically include:
- Your health
- Your marital status
- Whether you have children or other dependants
- The health of your spouse or dependants
- Ongoing financial commitments, for example a mortgage or school fees
- Other sources of income, for example part-time employment, or rental/dividend income
- Other pension provision
- Other investments, for example buy-to-let property or shares
- Your experience of investing
- Your attitude to risk and capacity for loss
- Your plans for retirement
- Retirement age considerations
- How much money you will realistically need to live on in retirement