Do any of your pension rights provide you with a guaranteed, inflation proofed income for life? Do they also provide for a widow’s / widower’s pension on your death?
So called “Defined Benefit” schemes have gradually fallen out of favour with employers but those that still exist have hitherto been seen as valuable in comparison to the now more common “Defined Contribution” schemes.
Pension reform may however change things for certain pension holders. From April 2015 it will be necessary to change the way that we think about pensions. Rather than simply concentrating on how much income they might generate it is now sensible to consider what your family might inherit from your pension rights when you are gone
If you have a “Defined Benefit” or “Final Salary” pension arrangement you may wish to consider whether the guaranteed income route is still sensible in your particular circumstances. For example, those with impaired health and those who are single may particularly wish to consider their options.
If you would like to talk further about the pension reform changes, please contact us on 0845 606 9632.