The introduction in 2015 of unrestricted flexible access from age 55 for UK Defined Contribution Pensions (also known as DC, or Money Purchase schemes), an option not available to those with a Defined Benefit Pension (DB, or Final Salary schemes), resulted in many people considering switching to Defined Contribution Pensions in their search for greater access to, and control over their retirement funds.
Cash equivalent transfer values were at record highs driven by historically low gilt yields, as well as concerns and uncertainty around Defined Benefit schemes funding and deficits i.e. their ability to make good the promises made to their Members.
Referendum Impact on Defined Benefit Schemes
The United Kingdom’s decision to leave the EU has had an unexpected impact on Defined Benefit Schemes.
- UK 10-year gilt yields have declined further to below 1 per cent for the first time ever, subsequently increasing cash equivalent transfer values being offered to members looking to transfer out.
- Defined Benefit scheme deficits rose from 820 billion GBP to over 900 billion GBP.
Given the uncertainties, let’s revisit the reasons that a pension transfer should be considered for expats with UK Defined Benefit Schemes.
- Access, flexibility and control of your Pension Fund
- CETVs at historical highs
- Spouse Benefits & Succession Planning with residual pensions for future generations
- Uncertainty around future funding, deficits and the ability to fulfil obligations
Contact Us For Further Advice
If you are the holder of a Defined Benefit Pension (or indeed any other type of Private UK Pension) and are living (or planning to live) overseas, then it is imperative that you contact us today to enable us to help you assess the options that you have in relation to these pension benefits.
In the first instance one of our pension specialists will get in touch with you to discuss your circumstances, establish your requirements and objectives, and isolate the options at your disposal. If there is then recommended action to carry out, we will work with you through the entire process to ensure that your pension is relocated appropriately and securely, and that your retirement income is protected and maximised as a result.