Since George Osborne’s 2014 Budget announcements regarding UK pensions there has been much discussion around the impact on pension transfers and QROPS.
QROPSreview has previously reported that many of the announced changes have actually been in place since 2006. However, much of the pension flexibility that has got many people excited will not apply to those with final salary pension schemes.
Final salary pension schemes are a type of ‘defined benefit’ scheme where you are promised a certain income in retirement. The amount received is based on a range of factors including; length of time served, your final pensionable salary and the scheme’s particular accrual rate.