Defined benefit schemes pay tax free cash based on formulas put in place by the scheme trustees which rarely equals the 25% of fund value available. Further forfeits for taking more tax free cash from a defined benefits scheme, known as the commutation factor, are a reduced income as well as not achieving full access to the 25% share.

Furthermore, if you access the tax free cash lump sum in periodic stages, you will be able to use the tax free cash allowance as income while still drawing the full 25% share. There is no requirement to draw on the balance as taxed income.

Bring a dream to life.

Having access to a large lump sum of tax free cash allows you to turn life-long ambitions into reality, transfer out for that big break or a break from it all!


Tina had a pension from her ex-employer that has a revalued deferred pension of £28,000pa (assuming no tax free cash was taken). She is 60 and is looking to take benefits now. The transfer value offered was £840,000


Top reasons why our clients transferred their final salary scheme

Your rules

Rewrite your own rules. Defined benefit pensions have fixed terms that have little to do with your circumstance. Your rules mean more flexibility and control over your pension fund based on your needs now and for your future.


Married or Single?

Defined benefit schemes are based on the assumption that everyone in the scheme is married and takes no account of your child or marital status. Transferring gives you the advantage of passing the full fund value to beneficiaries outside your estate.


Weak employer

If your employer becomes insolvent, the pension is transferred to the Pension Protection Fund that may restrict your pension to a maximum of £33,678 or 90% of the pension if lower.


What our clients say