About to Retire? Watch for a Pension Grab

The Sunday Times reported that many companies are targeting employees approaching retirement with pension offers that could leave them much worse off.Typically, this comes in the form of an offer of a higher pension provided you give up the right to all future increases. In one example, a man of 65 might be offered a starting pension of £26,000 instead of £20,000, which sounds terrific – but if he lives for the average 22 years and inflation averages 5%, he would be £240,000 worse off as a result of taking the offer.

Offers of this type are hard to evaluate, so we recommend you seek our advice before making a decision.