Defined Benefit Transfers

Thinking about transferring your final salary pension? It's one of the most significant financial decisions you can make. We provide thorough, independent analysis to determine whether a transfer is genuinely in your best interest.

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What you're giving up vs. what you gain

A defined benefit pension is a valuable asset — it provides a guaranteed income for life, typically linked to inflation, with a spouse's pension on your death. Transferring means exchanging this certainty for flexibility. Both sides have merit, but the decision must be based on your specific circumstances.

What you give up

  • - Guaranteed income for life
  • - Inflation-linked increases
  • - Spouse's pension on death (typically 50%)
  • - No investment risk
  • - No need to manage the investment

What you gain

  • - Flexible access to income (take more or less as needed)
  • - Full fund can pass to any beneficiary on death
  • - Potentially larger tax-free lump sum
  • - Control over how the fund is invested
  • - Access from age 55 (rather than scheme retirement age)

Our advice process

The FCA's starting assumption is that a defined benefit transfer is unlikely to be in a member's best interest. We follow a rigorous process to determine whether your case is an exception:

1

Gather information

We collect details of your DB pension benefits, the transfer value offered, your other pensions and savings, your income needs in retirement, and your personal circumstances.

2

Transfer value analysis

We run a detailed comparison of the guaranteed benefits you'd be giving up against what the transfer value could potentially provide through flexible drawdown, using realistic growth assumptions.

3

Assess your wider position

We consider your other income sources, health, family circumstances, attitude to risk, and whether you have a genuine need for the flexibility a transfer would provide.

4

Clear recommendation

We provide a written recommendation — either to transfer or to retain your DB pension. If we recommend against transferring, we'll explain why. If we recommend transferring, we'll advise on how the funds should be invested.

Who typically considers a transfer?

Defined benefit transfer analysis is primarily for people aged 55 and over who are approaching or already in retirement. Common reasons for exploring a transfer include:

  • Wanting to leave the full pension value to children or other beneficiaries on death
  • Needing flexible income rather than a fixed monthly amount
  • Having other guaranteed income sources (such as the State Pension or another DB pension) that cover essential living costs
  • Reduced life expectancy due to health conditions
  • Concerns about the financial strength of the sponsoring employer

Frequently asked questions

What is a defined benefit pension?
A defined benefit (DB) or final salary pension promises a guaranteed income in retirement based on your salary and years of service. For example, a scheme might pay 1/60th of your final salary for each year of service. So 30 years at a £60,000 salary would give you £30,000 per year for life.
Why would anyone transfer out?
Possible reasons include: greater flexibility in how and when you take income, the ability to pass the full fund to beneficiaries on death (DB pensions typically reduce or stop on death), concerns about the employer's financial strength, or a need to access a larger lump sum. However, transferring is not right for everyone.
Do I have to take advice?
Yes. If your defined benefit pension has a Cash Equivalent Transfer Value (CETV) of £30,000 or more, you are legally required to take advice from an FCA-regulated adviser before transferring. This is to protect you from making a decision that could leave you worse off.
What does the advice process involve?
We conduct a thorough analysis of your existing DB pension benefits, the transfer value being offered, your other financial resources, your attitude to risk, and your personal circumstances. We then provide a clear recommendation on whether transferring is in your best interest. The FCA's starting position is that a transfer is unlikely to be suitable — we'll only recommend one if the evidence clearly supports it.
How much does the advice cost?
We charge a fixed fee for defined benefit transfer advice, agreed upfront before any work begins. This ensures our recommendation is genuinely independent and not influenced by whether or not you proceed with the transfer.

Considering a DB pension transfer?

Book a consultation and we'll provide the thorough, independent analysis you need to make an informed decision.

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Or call us: 0115 967 0888

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

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