Guide · 2025-05-03
Questions to ask before transferring a final salary pension
Defined benefit transfers remain heavily scrutinised. These questions help you decide whether a conversation with an adviser is even warranted.
pensions defined benefit
A final salary pension is a promise of income for life, often with inflation linking and spouse benefits. Giving that up for a defined contribution pot is irreversible in most cases and is only suitable for a narrow set of circumstances.
Ask first: Do I need flexibility more than guaranteed income? Am I in serious ill health with a shortened life expectancy that the scheme’s early retirement terms do not reflect? Is the scheme funding position causing genuine concern after reading the trustees’ report?
Next, request a cash equivalent transfer value and the date it expires. Compare that figure with the income you would forgo, including any contingent spouse pension. The arithmetic alone rarely settles the matter; it frames the discussion.
FCA rules require advice from a suitably qualified pension transfer specialist for most transfers of safeguarded benefits above a threshold. Wrenfield will say clearly if a transfer enquiry is outside our remit and refer you appropriately.
If the answer after these questions is still uncertain, pause. Keeping the defined benefit income and building flexible savings elsewhere is often the quieter, stronger path.