Your Defined Benefit Pension: Caution - Transfers are only suitable for a small minority
If you have a defined benefit (DB) pension, often referred to as a Final Salary Scheme, you may be offered the option to transfer it into the more common type of pension (defined contribution). This is a big decision and an irreversible one, so it is important to understand exactly what this means, and what the pros and cons for you might be.
Transferring a defined benefit pension is unsuitable for most clients. From our experience transferring is the right decision for less than 10% of clients (less than one in ten).
We provide you with access to information so that you can make an intelligent decision on whether to investigate your transfer options or not. We want to ensure that you understand the implications of transferring before you engage us to investigate on your behalf. Our triage process allows us to spend our time more wisely and it may save you from paying an unnecessary fee.
Your decision to transfer is not to be taken lightly and you should ensure that you find out as much information as can and take professional advice. You should take your time before making a decision because this is a once only decision which cannot be reversed, and you should not rush into making a transfer without careful thought.
Pension Transfer Advice Consumer Guide
We follow all nine principles of the Pension Transfer Gold Standard which starts with all clients following an educational program so that they fully understand their pension options. Please click the link on the Gold Standard Logo and read these principles.
The Financial Conduct Authority has relaunched its pension transfer ‘advice checker’ tool, designed so that anyone can see whether they have received suitable or unsuitable advice.
This tool was first launched in 2020 and was updated and relaunched on 21st April 2022. It has 11 stages asking anyone who has transferred their pension about the advice they received.
Pensions transfer advice checker | FCA
A report prepared using the FCA checker where each of the 11 stages has been given the proper consideration.
We have included this on our website for two reasons:
Firstly, as a resource for anyone who has received pension transfer advice who wishes to confirm that they have received correct advice or otherwise. If you have transferred your pension and the report indicates that the advice may not have been suitable we are here to help so get in touch.
Secondly, the report demonstrates why we insist on clients providing us with comprehensive information before we provide them with pension transfer advice. Sometimes clients query why we need them to provide so much information and hopefully by providing the report which shows the information that the FCA are demanding that we hold on your file you will understand. The consideration to transfer your defined benefit pension is a vitally important decision, it is irreversible, it is the correct route for only a small minority, and it is important that everyone is fully satisfied that transferring is the right decision you.
We recommend that you study the following sources of information
All clients must read our comprehensive guide to defined benefit schemes and personal pensions. You can read this guide on screen, download it as a pdf, and if you engage us for advice, we can send you a hard copy by post.
Watch the Money Alive video series
The Money Alive Final Salary box set comprehensively covers the benefits of staying in a DB scheme and explores the implications of transferring out. It includes information on tax, risks, death, as well as other topics and case studies.
This video box set is accredited by the Pensions Management Institute and is part of the Personal Finance Society Gold Standard.
We subscribe to Money Alive and we provide our clients with access to their educational video box sets.
There are 17 short videos of about 5 minutes each which you are required to watch before we proceed.
Stay or Transfer – this is link to the first video in the series
⦁ Guide to Staying in the Scheme
⦁ Is my preserved pension frozen?
⦁ What happens when I retire?
⦁ How will my pension be taxed?
⦁ What will happen on my death?
⦁ Are there any risks?
⦁ Case Study – staying in
⦁ Transferring to a private pension
⦁ Do I need advice?
⦁ Is a transfer financially viable?
⦁ What would happen when I retire?
⦁ What are the risks if I transfer?
⦁ How do I avoid scams?
⦁ How would my pension be taxed?
⦁ What happens on my death?
⦁ Case Study – transferring out
Receiving advice on your defined benefit pension and whether you are better off by staying in your current scheme or transferring out.
The FCA changed the requirements for providing Defined Benefit Transfer advice with effect from 1st October 2020 and we fully support those changes which we believe were long overdue.
Interface Financial Planning is both qualified and authorised to provide advice on defined benefit pension transfers and if you would like advice in this area, please get in touch.
What our Clients say
Alan has the ability to listen and care about people
We first met Alan in 1999; we both wished that we
had known him many years before. Alan has several attributes, in addition to his financial skills, the ability to listen and caring about people. From the first day that we met our financial affairs became organised, now to the point where we can say that we never have any financial worries, in fact we seem to be better off financially now more than ever before. All due to Alan's guidance and expertise. We both consider Alan a very good friend, nice to know he would be there if we needed him.
Norman & Peggy Howell, Birmingham
I always receive a fast and efficient response
It has been almost ten years now since David and myself first consulted you for advice and guidance on financial matters, so I feel that it's time that I wrote to thank you for the help and assistance that has always been forthcoming. Shortly after we had moved house in 1992, you advised us to switch from one type of mortgage to another, which turned out to be the most successful financial move we had made in years. Over the years we contacted you for financial advice and guidance when our daughter was heading for University, on taking out life and house assurance policies and general financial overhauls. Your recommendations have always been sound and given in a manner both efficient and friendly, none more so than when I was widowed just over two years ago and needed a considerable amount of help, immediately given upon request and with great sensitivity during what was a very difficult time for me. There is little I can add, except to also thank the rest of your staff, friendly voices at the end of the telephone who take and pass on my enquiries and ensure that I always receive a fast and efficient response. I can recommend, without reservation, Interface Financial Planning Limited.
Maureen Pittaway, Sutton Coldfield
A very special and caring person
Alan - A very special and caring person, who it's been a pleasure to meet - thank you again it's been a privilege and honour, your kindness has been second to none and we know you've helped probably more than you should but I can assure you it was all very much appreciated, more than you know.
Bill & Sue Ralph, Oldbury, West Midlands
Advice that has been invaluable
Alan has been our financial adviser for 5 years. He is professional, well informed and reliable, and his advice has been invaluable to us. He and his staff are courteous and efficient, and we have no hesitation in approaching him for advice on any aspect of our finances, or in recommending him to relatives, friends and colleagues.
Tony & Sue Critchley, Lichfield
Always friendly and considerate
Alan Moran has acted on our behalf for over 10 years. Alan has over this time always listened to our requirements and fed back to us the best options, given our constraints and made very useful alternatives suggestions. He has always been friendly and considerate. I would not now consider making any financial investment or savings decision without first consulting him.
Ian & Joyce Miller, Birmingham
Honest and always takes the time to explain everything thoroughly
Alan has acted as our family Financial Adviser for many years. He is honest, non-pushy and always takes the time to explain everything thoroughly as often as needed. Alan is not only our Financial Adviser but we regard him as our friend. We would have no hesitation in recommending him and his staff to anyone who needs a Financial Adviser they can trust.
Malcolm & Sylvia Smith, Perry Barr, Birmingham
Alan's sound advice has improved my life no end.
I was introduced to Alan Moran in 1999. I was juggling my finances just to keep afloat and was wary of taking outside advice. A close friend of mine recommended Alan as a reliable and honest adviser who would take great care in choosing the right path to get my financial affairs on track. Trusting their judgement, I arranged to meet Alan. I was treated with the utmost care, given time to consider the guidance that Alan provided and never pushed into taking on financial services. Meeting Alan and acting upon his sound advice has improved my life no end. Even on a limited income, prudent planning has enabled me to save for annual holidays and even cope with the occasional unexpected expense as well as keep up to date with all of my bills. I count Alan among my friends and have recommended him to both my sister and my parents. He really is the genuine article and I cannot thank him enough for all he did for me.
Zena Davis, Coventry
Alan's knowledge of financial matters is very comprehensive
Alan was introduced to me by a friend at the time when my finances were a mess and I just didn't know what to do for the best. Calmly, kindly and sympathetically Alan sorted everything out. Since then he and his wonderful team have sorted out my house and car insurances, my son's mortgage and pension plan and, last but not least, guided me through the ramifications of buying a property in Spain. I have recommended him to friends, as his knowledge of financial matters is very comprehensive and sound. Alan is able to offer advice without making the recipient feel a complete idiot and he takes time to explain things thoroughly and in a way that is understandable.
Tricia Adams, Cannock, Staffordshire
Alan's sound advice has improved my life no end.
I have been a client of Alan Moran's for 12 years and during that time he has given me valuable advice on all aspects of finance. He always explains everything thoroughly and has been particularly supportive during periods of crisis in my life. He helped my late husband and I when his business went into liquidation and was even more valuable when my husband died, pointing me in the right direction with my finances and getting me to invest my money sensibly and with the just rewards that I am now experiencing. I regard Alan not only as my Financial Adviser, but also as my friend, and would, and in fact have, recommended Interface Financial Planning Services to anyone needing a Financial Adviser they can trust.
Marian Poolley, Sutton Coldfield
Efficient and reliable in terms of financial decision making
Alan Moran has been our independent financial adviser for a number of years. He has proven to be an efficient and reliable person to guide us in terms of financial decision making with regard to planning and management of current and future economic matters. He is friendly, discreet, careful and always courteous.
Chris & Tony Hampton, Halesowen
Highly professional, friendly and supportive approach
We have been clients of Alan Moran (Interface Financial Planning Ltd) for over five years. In this time, his highly professional, friendly and supportive approach has provided us with a thorough review of all aspects of our finances. We are now in a position where both our short term and long term financial planning is well organised and structured to suit our personal needs. We have recommended Alan and his team to many of our friends and know that they, like us, have been impressed and grateful for the care he has taken to provide such individual service.
Ann & Allan Rowlands, Handsworth Wood, Birmingham
Professional and friendly manner
Just dropping you a line to say thank you for all the help you've provided us throughout the purchase of our house and the investment policies you've recommended us. May we both thank you for the very professional and friendly way, in which you handled our business, and look forward to hearing from you in the future.
John Fletcher & Linda Davis, Bromsgrove
Wouldn't hesitate to recommend
We were recommended to Alan by my brother in law and have been very pleased with his advice and assistance. Since using his services, we have organised our Wills, Pensions and re-jigged our finances, and now would not consider making any financial investment or savings decision without first contacting him! We would have no hesitation in recommending his services to anyone requiring sound independent financial advice.
Richard Salaman & Emma Staples, Surrey
Valuable advice on our mortgage, future planning, savings and pension investments.
Seeking financial advice for the first time, I received details of three local IFAs. However, these cold statistics gave no idea of the actual person to whom I would need to entrust confidential information. Sometime later I came across an article in a local paper by Alan (Moran) in which the writer came over as friendly and trustworthy as well as being a qualified IFA. Having contacted Interface Financial Planning, the result has been a friendly relationship and valuable advice on our mortgage, future planning, savings and pension investments.
Mike & Gloria Nash, Great Barr, Birmingham
I have never had a single financial concern
The best thing financially that I ever did when I contacted Alan. I have never had a single financial concern and he has supported me through difficult times including the death of my dear wife.
Norman Howell, Birmingham
“Don’t put off the planning for your financial future as you are
never aware of what lies around the corner”
We first met Alan in 1999; we both wished that we
It was very important to gain financial advice in such a challenging time after my wife passed away. I needed to ensure that, as a newly single parent, I had got my finances sorted out and had also made provision for my children in case anything happened to me. As neither my wife or myself had made a will, Alan’s advice and guidance through this very difficult period was invaluable, especially dealing with the paperwork associated with this.
Paul from Birmingham
“Alan, was immediately empathetic, encouraging and, above all, practical and straightforward”
I realised that I had been operating both my general and particularly financial affairs reactively for far too long and it was time I behaved like a grown up. So I started to think about how I might achieve some sort of practical stasis. Alan, was immediately empathetic, encouraging a nd, above all, practical and straightforward. I hadn’t consciously taken financial advice before, but came to realise that the various salesmen who had sold me policies and pension upgrades were not motivated in the same way a ‘proper’ financial adviser was (or should be). Consequently, I had taken on commitments that weren’t necessarily in my best interests. Alan is genuinely interested in my circumstances, and owns a readiness to go beyond what I had imagined would be the boundaries of the role.
Steven from Cirencester