The pension transfer process is necessary for various reasons. Whether the transfer is within the UK or to an overseas pension scheme, it will become necessary for the following reasons:
· When you are changing jobs.
· The pension scheme is being wound or closed down.
· You are doing a pension transfer to a better scheme.
· You want to bring together the pension schemes you are holding with different providers.
· You are looking to move with your current pension scheme to one in a country overseas.
Regardless of your reason for pension transfer, you definitely need the services of a financial adviser. If your pension transfer is to another pension provider in the UK, a financial adviser will help you check a few things. The following also applies if the pension transfer is to a company overseas.
· Does your existing scheme allow you to transfer all your pension pot?
· Does your preferred scheme support the transfer?
As you push for that pension transfer, remember there are a few things you have to put into consideration.
· You will still have to make payments to your new scheme.
· There is a transfer fee which the financial adviser will advise you.
· The right to take the pension at a certain age are some of the things you have to forfeit.
· You lose the right to a tax-free lump sum of twenty five percent of your total pension.
If you are in need of a financial adviser, talk to are at KLO Financial.