You have probably heard plenty of information on the television, or seen articles in the paper, about pensions recently - and rightly so. Your pension is hugely important for the future and making sure that you do the right thing with it is very important. However, all this information can naturally be confusing. Pensions can be a daunting subject, and it can be difficult to know what you should be doing to make sure that you get the best from your pension to ensure the best outcome for your future. Here we take a look at the do’s and don’ts that you should take into account when choosing a final salary pension service.

Do seek professional advice

It is very important to seek advice from a qualified Chartered Financial Planner. Since new Pensions freedoms were introduced in 2015 there is far more flexibility available to those people looking for the best solution for their pension funds. An independent financial planner will be able to look at all of the available options. They possess all the necessary industry information to be able to help you look at all of the options that are available before recommending the one that is best suited to your needs. An independent planner is not tied to any one pension company so will be able to look at what all the different companies offer, ensuring the best deals for their clients when it comes to their final salary pension schemes.

Do not use a cold call company

It is never a good idea to use a company who cold call you, and this is especially true for your pensions. Do some research and find a local company, contact them yourself. If a company is touting for business over the phone then you have to ask yourself why, and indeed where they got your information from. You want to make sure that your pension scheme that you have worked hard to build up over the years is in the right hands so do your research.

Do look at all the options

Your financial planner will research a variety of options for you, ones that they feel will suit your individual needs. This will include whether you should in fact transfer your final salary pension scheme or not. With the products available from pension companies changing all the time they will have access to all the latest products and this will help them to reach the best impartial decision. They will detail all their recommendations to you together with highlighting what they believe is the best option for you.

Don’t be fooled by the quick solution

Researching the pension market, getting figures together and making a recommendation takes time. Do not be fooled by a company who take a very brief look at your financial circumstances, the details of your pensions and then offer you advice really quickly.  Once you have moved your final pension salary scheme you will not be able to reverse the decision, so it is vital that you do not rush into anything, only to regret it later. Do not be fooled by fantastic figures that are given to you verbally. Pension companies will give projections of how they expect your money to do, and what sort of payments you should expect, if you are not offered this then be wary.

Do compare

Make sure that the company you choose to look at your pension will not only look at what the benefits might be for you of moving your pension away from a final salary pension scheme but also what the benefits are of staying in the scheme you are already in. Moving is not always the best option.


Published by Ruby Daub