Caution on pension transfers

Both employers and pension scheme providers expressed concerns about people transferring benefits out of ‘final salary’ pension schemes in order to benefit from the greater freedoms announced in the 2014 Budget.
The government’s intention to ban such transfers after April 2015 has sparked a rush of interest, but both employers and independent scheme providers are reluctant to accept instructions to transfer unless the individual has taken independent advice. Many final salary schemes offer valuable benefits that members may not fully appreciate and pension firms fear they could be sued later when members realise how much they have given up when making a transfer.