Is Now The Time To Transfer Your Defined Benefit Scheme?
For the thousands of UK expats whose pensions are held in defined benefit schemes there has always been a temptation to cash out and rollover your pension pot into a defined contribution scheme. Whilst most people cash out their pension benefit for the added flexibility of being able to drawdown lump sum payment s or for the ability to pass down any remaining funds once you pass away there is now a third reason to consider transferring out your defined benefit scheme.
That reason being the fact that many pension funds are now willing to offer up to 30 times the promised annual pension which is a significant premium to the standard 20 times multiple that had been previously accepted as “industry standard”. These unprecedented transfer values are largely a consequence of historically low interest rates and gilt yields which together underpin how annuities like defined benefit schemes are valued. The lower the interest rates and gilt yields are the more attractive and thus more valuable defined benefit schemes become.
These generous transfer values combined with concerns about the security of many defined benefit schemes following the collapse of BHS has prompted thousands of people to exit there defined benefit schemes and move into a defined contribution arrangement.
Are you thinking about taking advantage of these generous transfer values? Then why not call AustralianQROPS the experts in transferring defined benefit schemes from the UK to Australia! Contact us at www.AustralianQROPS.com.au
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