Pension Transfer Adviser in Cambridge

If you’re thinking about transferring or accessing your pension, and the value of your pension pot is £30,000 or more, you must get professional advice.


Pension Transfer Advice Cambridge

Pensions fall into two main types – defined contribution (also known as ‘money purchase’ or ‘DC’) pension schemes and defined benefits (also known as ‘final salary’ or ‘DB’) pension schemes.

Pension transfers (sometimes called pension switching) benefits from one DC to another DC pension is reasonably straightforward because you are moving one pot of money from one pension provider to another pension provider offering the same type of scheme. However, there are three main things you must consider:

  • The charges (costs) – are the charges higher or lower than the scheme you’re considering transferring and how much will it cost to make the transfer? Charges may also include any penalties involved.
  • Investment risk – the level of risk of the pension fund you’re invested in and the fund or funds you’re considering investing in. Are they suitable for your appetite for risk? And;
  • Guarantees or ‘safeguarded’ rights – does the existing scheme provide any guarantees like bonuses or a guaranteed annuity rate (income) at retirement? Losing these may be very costly.

Also, don’t be tempted to base your decision to transfer solely on “past performance”. The performance of a fund is not guaranteed and may not be a good indication of the future performance. Besides, chasing past performance of a fund that may not be suitable, is expensive or involves giving up guarantees, could be a very risky thing to do.

Transferring benefits from a DB pension scheme to a DC pension is a completely different exercise. By definition, you would be giving up certain guaranteed benefits in favour of benefits that are not guaranteed. The benefits will rely on future investment returns, interest rates and inflation. Alongside this, the value of your pension will be reduced by charges.

Therefore, you should be very cautious about transferring benefits from a DB pension scheme and we recommend that you avoid firms who are actively promoting the idea of doing this. However, there may be specific reasons or circumstances that mean a DB transfer would make sense. For example, your health and the death benefits, whether you have any dependants, when you want to retire, how much the lump sum benefit might be and what other income or assets you have available for your retirement. However, you need to fully understand the options and risks as well as the potential benefits.

Therefore, if you are considering a DB transfer it is imperative that you get professional advice from someone who is appropriately qualified and registered with the Financial Conduct Authority (FCA) as a ‘pension transfer specialist’. This is a high-risk area of advice and has cost for a firm that is prepared to provide this advice. Therefore, any advice and recommendations will have commensurate cost attached.

To help you, we have prepared a document about our own DB pension transfer process. This will provide you with a better understanding of the work and costs associated with this area of advice.

Download PDF

Ask us a question

What people say about us:

I have always been very satisfied with the advice and service I receive from them.

- Jennifer Hoyos

My adviser Chris Galpin is very good at explaining how our investments and pensions work, and he is always available should we need advice.

- Annie Roberts

We used the services of the Chris Galpin and I cannot rate his helpfulness, knowledge or patience highly enough. He very efficiently soughted out the best mortgage for us and then got on with the application process with the minimal amount of fuss. Nothing was too much trouble and I will be using him in the future.

- Fiona Gilbert

All our dealings to date have been excellent, they have listened to our requirements made suitable suggestions and implemented them in a friendly and professional manner.

- Michael Dearman

I have had honest advice and when my husband died they did all the necessary paper work for me very swiftlly and did not charge. A friendly professional firm who quickly understand your needs – no hard sell – your protection paramount.

- Patricia Revel

I get a good personal service from an experienced and thoughtful person whom I have known for 30+ years, and trust. That’s very valuable to me even when we don’t entirely agree on priorities! He also advises me on things I need to get around to doing, and I usually follow his advice.

- Penny Henderson

I have been with Dartington since before they were Dartington, and the level of service has continued at the same high standard.

- Adrian Moxon

They were recommended to me and I have already recommended them to others. They are good at explaining things in a way I understand.

- Sheila Thomas

Never had any problems. Friendly consultancies.

- Roger Stratford

I trust my adviser.

- Jon Daly

The financial adviser I have dealings with has been excellent over the years.

- Janet Huskinson

My experience has been very good, especially the personal help from Philip Bowden-Pickstock.

- Christine Jolly

I was very happy with the service that Dartington provided with respect to our new mortgage and I have already recommended them to a friend.

- Dr Michael Gifford

Our Address

Dartington Wealth Management Ltd.
5b Clifton Court,
Cambridge CB1 7BN

Tel: 01223 211 122

Our Newsletter

Subscribe to our newsletter to get the latest scoop right to your inbox