Michelle is an award-winning chartered financial planner who holds the designation 'Fellow of the PFS' demonstrating her commitment to maintaining the highest standards of knowledge, ethical conduct, and professional practice. Michelle is also an accredited member of the Society of Later Life advisers. Michelle offers a fully personalised service tailored to each clients individual needs and goals, using an approach that was recognised and honoured by the Women in Financial Advice awards in 2021. Clients working with Michelle can expect a high level of professionalism, integrity and a lasting relationship built on trust and open communication
Do you have a final salary pension scheme and recently received a Cash Equivalent Transfer Value (CETV)? Accepting the lump sum offer may or may not be the right decision for you.
A Cash Equivalent Transfer Value (CETV) is a lump sum offered to people with a final salary pension scheme, sometimes called a defined benefit (DB) pension. The lump sum may be offered and can only be accepted if you agree to give up your future pension claims.
The figure will be calculated based on the projected cost to purchase the same pension scheme income, predominantly based on your health, age, inflation rate and final salary pension entitlement. The money is then used as your retirement income, rather than receiving a pension. The process is also known as a final salary pension transfer.
We offer a complimentary introduction meeting to understand your existing plans and your financial objectives so that we can offer you the right advice and service that meets your objectives and your preferences.
There are incentives to accepting a Cash Equivalent Transfer Value offer, but these benefits will depend on the exact terms and conditions of your current defined benefit pension. Some defined benefit pensions do not offer favourable terms to surviving spouses, partners, and dependants if you die. For example, the amount they receive can be significantly reduced to around 50% - or they may not receive anything. You should consult your pension terms for details.
On the other hand, accepting the Cash Equivalent Transfer Value may provide more financial security to your loved ones in the event of your death. If you have serious health concerns, you may want to consider the Cash Equivalent Transfer Value.
There are other incentives to a Cash Equivalent Transfer Value, which arise from personal situations. For that reason, it’s best to speak directly with a professional financial adviser.
The biggest risk of opting for a Cash Equivalent Transfer Value is that you lose the prospect of a guaranteed income for the rest of your life. Your future finances may be reduced by leaving the final salary pension scheme.
Once you decide to accept the lump sum and transfer out of the final salary pension, the decision is final. You cannot change your mind and transfer back. Final salary pension transfers are an important decision and it’s advised to consult with a finance professional before making your move.
Pension transfer scams do exist. If you have received a CETV offer, you should confirm the offer is genuine by contacting your pension provider. Do not use the contact details listed on the CETV documentation. Instead, contact your pension provider using their official details, sourced from other letters or online.
When we tell you about a fee, you will always receive a clear explanation of: The total fee, the advice service it relates to, how it's been calculated, when you need to pay it and your payment options.
TRANSFERRING OUT OF A FINAL SALARY SCHEME / DEFINED BENEFIT SCHEME IS UNLIKELY TO BE IN THE BEST INTERESTS OF OR BE SUITABLE FOR MOST PEOPLE.
ESTATE PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
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