Defined Benefit ('Final Salary') Pension Transfers

The spike in transfer values following the referendum, combined with improved flexibility brought about by the 2015 pension freedoms has seen an increasing interest in transferring defined benefit (DB) pension schemes to personal pensions.
The decision to transfer is rarely straightforward and involves weighing up often competing features and benefits. Transferring from a defined benefit (‘final salary’) pension scheme to a personal pension could give you greater flexibility and better death benefits but this must be considered against the loss of certainty and increased investment risk. It is vital you have the best advice to help you navigate through this complex and important area. Chadwicks has a range of well qualified experts to help you with the transfer decision and throughout your retirement.
A well-qualified and experienced team
Advice on pension transfers must be given, or checked by, a Pension Transfer Specialist. A pension transfer specialist must follow FCA training and competence rules, have the appropriate qualifications and, with that, the permission to perform the function. As well as being Chartered Wealth Managers and Chartered Financial Planners, Matthew Goddard and Richard Ross are also Pension Transfer Specialists.
A commitment to long-term support
It is important to remember that, if you decide to move your benefits to a personal pension, advice around the actual transfer is the start of the process, not the end. The success of your decision will rest on investment and financial planning advice over the next twenty, thirty or even forty years. Our graduate training scheme means we are continually building a team that will be able to support you today, tomorrow and into the future - we have advisers in their 20s, 30s, 40s and 50s.
A fair fee structure
We don't believe in charging large up-front fees or locking people in with exit penalties. Our minimum investment is £200,000 - as long as you meet this threshold we make a charge of 1% of your transfer value to analyse your options and make a recommendation. Even this is capped at £8,000 and is not charged if our advice is not to transfer - we simply ask you to cover the cost of the third party assesment we use as the foundation for our advice. Our ongoing charges start at 1% a year for the first £1m. If you feel we are no longer adding value then we simply ask for one month's notice to end the relationship. There are more details on our fees here.
A low total cost of investing
Drawing an income directly from a pension requires more ongoing management and advice than, say, a simple stakeholder pension but it is important the fees do not get out of hand. Our total fees (advice, pension platform and fund management) are usually under 1.5% p.a. We use predominately passive funds which also means the 'hidden' additional trading costs are low.
A robust investment process
When you start drawing money from your pension the way you take this income can be as important as the underlying fund performance. If markets fall when you are saving for retirement it is not a disaster and may even be a good thing – if you keep squirrelling away you’ll be buying more units at a lower price and so will benefit from a boost when the recovery comes. If markets fall once you’re retired, then you risk taking money from depressed assets which then never have a chance to recover. It is important to avoid this as it can lead to long-term damage to your portfolio. Radostina and James look after our client's investment portfolios. Both have distinctions at Masters level and are responsible for implementing income strategies that manage withdrawals through volatile periods to protect your investment.
Cashfow modelling
None of us has a crystal ball but a cashflow model can help you look at the effect of different income strategies on both your retirement income and the amount of tax you’ll pay. Matthew is a Certified Financial Planner and has specifically trained in this area.



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Chadwicks Limited is authorised and regulated by the Financial Conduct Authority
Chadwicks Limited is registered in England no:3292960.
Registered address: The Studio, Wattle Cottage, Mangreen, Norwich, NR14 8DD

Where you have a compliant or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: