Pension transfers will result in individuals giving up valuable guarantees - as a result, they do not represent an appropriate course of action for most people. Sterling will provide an honest and frank assessment of whether a pension transfer is a suitable option.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

A personal pension often represents a more suitable option for clients requiring flexibility and access to their funds.

Pension legislation and, correspondingly, pension advice, is subject to change, according to the wider economic and social environment. Therefore, completing a review of an existing Defined Benefit pension scheme represents best practice.

Transferring out of a Final Salary scheme is unlikely to be in the best interests of most people.

Some of the reason to consider retaining this type of pension;

  • A guaranteed income that automatically increases year on year for as long as you live is important to your needs
  • On death of the pension holder there are guaranteed income provisions for Spouses or Dependants
  • None of the risk in providing you with the benefits from the scheme rests with you
  • In the unlikely event the pension scheme was unable to meet its income obligations to you and the employer went into liquidation – the Pension Protection Fund (PPF) would meet the liability and continue to pay your income (subject to maximum levels)
  • You are still an active member of the scheme accruing additional benefits/li>
  • Advising people to forgo a guaranteed income of this type must be considered very carefully,however, there are times when waiving this type of guarantee could be considered.

Some of the reasons to consider transferring this type of pension;

  • If there are serious or terminal health issues
  • You have alternative retirement income on which you can rely, and flexibility is more important than guarantees
  • You may be unmarried and have no financial Dependants – so do not require Spouses or Dependants benefits
  • You may wish to phase your retirement and access your pension in stages
  • Passing wealth via generational pension planning is more important than guarantees and you have sufficient other assets to rely upon in retirement

The relative advantages and disadvantages outlined above can, in some cases, be bypassed by utilising alternative methods to transferring out - for example, obtaining life insurance to improve death benefits.

Taking the decision to transfer from a final salary scheme to a defined contribution scheme is an extremely important decision - Sterling’s experienced advisers can guide you through the process, providing advice and guidance on the appropriate steps.

Sterling Partnership Limited is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.

Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the FCA register ( under reference 440703 and 440718


  • 2021 © Sterling Partnership Limited. Registered in England & Wales, under no. 04645697.
    Registered office address - Unit 5, Westgate Court, Silkwood Park, Ossett, West Yorkshire, WF5 9TT.