Why retirees with final salary pensions should get advice

People approaching retirement and considering cashing in their final salary pensions are being urged to get financial advice before proceeding with taking out a lump sum.

Foster Denovo is issuing the warning in the wake of research from the Office for National Statistics which discovered funds transferred out of defined benefit pension schemes almost tripled last year.

By doing this, said Foster Denovo, retirees could be giving up a guaranteed income for life in exchange for an ‘enticing eye-watering’ cash lump sum.

Jamie Smith, Partner at Foster Denovo, said: “While it is a legal requirement to take advice if your final salary transfer is worth more than £30,000, it doesn’t mean that it is the right decision for you.

“The search for the right financial adviser is not just about looking for someone with the correct qualifications – you need to work with someone who is highly experienced in this area.

“You need someone who will ask you questions about your aims, circumstances and ambitions to get the right outcome for you.”

Jamie discusses the key factors savers should consider when seeking advice for a pension transfer.

Read the full article on The Money Pages here.