The Aviva Defined Benefit Final Salary Pension Scheme
If you have ever been given professional advice to leave the former Aviva (previously known as Norwich Union) defined benefit final salary pension scheme during your working life or on retirement, it is worth checking that the advice you were given has not left you significantly out of pocket.
All too often, the apparent justification for transferring out of any DB pension scheme can focus simply on the desire to ensure that on death, the pension pot is passed onto a partner or to children. This is NOT a valid reason in itself. For example, appropriate life cover insuring this “risk” can often be bought for a fraction of the initial and ongoing advice fee taken by a pension specialist as a result of their recommendation to move your pension elsewhere. To be clear, there is also no need to move your pension away to access a cash free lump sum at age 55 or above.
The key issue
The key issue should always be to ensure that a transferred-out fund continues to provide a suitable income substantially into retirement or up until death. Remember stock market fluctuations can, at a stroke, decimate your fund – Something you do not have to worry about if you remain within the safe confines of a DB scheme.
The FCA are clear on the fact that moving these type of pensions is far from a good idea for everyone and the opening gambit should be that it is not appropriate. To prove otherwise, a pension specialist requires to undertake a substantial investigation into your pension, your personal and family finances and your financial needs. As a result, transferring out will only be suitable advice for a small percentage of DB pension holders.
If you have taken advice to transfer away from the former Aviva defined benefit final salary pension scheme any time after April 1988 and are concerned you may have lost out, Beat the Banks are currently offering an entirely free pension check. To find out more, call 01382 200474 or text Pension to 87007