Defined benefit pensions — what “transfer” really asks of you

Defined benefit (final salary) pensions promise an income for life, often with spouse benefits. Transferring to a defined contribution pot swaps that promise for flexibility and investment risk. The marketing around flexibility can sound liberating. The questions below keep the trade-off visible.

Questions to ask before any transfer talk deepens

• What income would the scheme pay at your intended retirement age, and how does it increase?
• What would a surviving spouse or partner receive if you die first?
• Are you transferring because you need flexible access—or because someone suggested a large transfer value looks attractive?
• Could a partial retirement or bridging with other savings meet the need without giving up the scheme income?

Our stance at Fairgrove

We do not process defined benefit transfers as a routine service. Where a transfer may be appropriate, we explain the gravity of the decision and, where required, involve a specialist who can advise on the transfer itself. A retirement income review can still map how a defined benefit income sits alongside other pots without moving anything.