The member (aged 51 yr) was a senior executive at a multi-national firm (‘Firm X’) with some 25 years continued service. The company was acquired by a rival in late 2019, (‘Firm Y’). He was a member of Firm X’s Defined Benefit pension and was offered the opportunity to take a once-off Transfer Value of €1.595 million in exchange for giving up his Defined Benefit pension annual payment of €77,500 from Firm X. (payable for life from age 60).
Our client had a normal retirement date of age 60 but was still actively working and now pensionable (with Firm Y) and had no plans to retire before age 60.
Concerns
He requested Imperius Wealth to explore the alternative available. Our research compared the different options and presented recommendations to the member.
Action taken
We believe that this four-eyes approach (Adviser & Actuary) enhances the client’s comfort with the evaluation process, in what is for most individuals and their family a very significant financial decision.
For all the above reasons, advising a client on the benefits or drawback of their DB Pension V’s A Transfer Value is some of the most detailed and important advice that a financial adviser engages in.
If you would find above information relevant and would like to discuss further, please contact one of our financial advisers at hello@imperiuswealth.com to arrange a callback.
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