Final Salary Pensions Blog

As of this writing, if you ask who offers Final Salary Pensions you would be hard-pressed to find any private organisations offering any kind of defined benefit pension to newcomers. Even the public sector which has held on the longest has moved over to defined contributions arrangements. According to new figures from the Pension Protection […]

When you hear about employers and companies failing, you could be left feeling unsure about where you stand with your pension and asking the question, is my Final Salary Pension safe? Will the promise to provide guaranteed income for life be kept? People with Final Salary Pensions are likely be wondering whether their schemes will […]

The straightforward answer to how long does a Final Salary Pension last is that it will last for as long as you live and then if your spouse is still alive, a portion of your Final Salary Pension is paid out to them for the rest of their lives. Unfortunately, it stops there as this […]

Teachers who started work before 2015 will have been in a Final Salary Pension Scheme so these teachers do get a Final Salary Pension. A Final Salary Pension pays a higher level of benefits than the newer career-average deal. Older teachers who had a normal pension age of either 60 or 65 and were within […]

Private sector Final Salary Pensions still exist, but most are not in their original form. Recent statistics from the Pension Protection Fund (PPF) and the Pensions Regulator report that just over 1000 of the United Kingdom’s original six and a half thousand Final Salary Pension Schemes remain fully open to employees. The term ‘fully open’ […]

A Final Salary Pension is not a sellable commodity so to try to answer the question can you sell a Final Salary Pension in an indirect way; it is necessary to step back and think about its purpose and value first. Its purpose is to provide the Final Salary Pension Scheme member with a secure, […]

What happens to a final salary pension on death? Final Salary Pension (Defined Benefit) schemes usually provide entitlement to a spouse’s, civil partner’s, or dependant’s survivor’s pension in the event of the member’s death pre-retirement or post-retirement. However, if the member is a deferred member of a deferred benefit scheme (e.g., Final Salary Scheme), there […]

The crucial factor here is the age at which all private pensions can be accessed in the UK and this is set by pensions regulation. The current age is 55 but this is rising to 57 in 2028. There are exceptions to this rule notably, ill-health and a shortened life expectancy. Under normal circumstances, Final […]

Final Salary Pensions are good for pensioners compared to other types of workplace pension with respect to their guaranteed benefits in payment. However, Final Salary Pensions are no longer offered to new employees, and many have closed to future accrual meaning they no longer accept any new contributions from members. Closed to future accrual takes […]

When did Final Salary Pensions stop… Effectively, thinking of them as a collective, they are in the process of stopping however, that process is more one of metamorphosis! Over the past few decades, many have already defaulted and have been dealt with by the Pension Protection Fund (PPF). Many schemes are currently underfunded, but it […]

The short answer to do Final Salary Pensions increase with inflation is yes, they do increase with inflation. Final Salary Pensions as with all defined benefit schemes, increase with inflation both as benefit entitlements before pensionable age and also when in payment. Final Salary Pension schemes commit to making statutory increases to pension entitlements. This […]

Cashing in your Final Salary Pension is not an easy thing to do because its primary purpose is to be there for your long-term retirement income. However, the first step to finding out how do I cash in my Final Salary Pension is to check whether you are required to get independent financial advice. If […]

Average UK pension pot According to one of the top pension providers in the UK, Aegon, the average value of a pension pot in the UK is currently around £50,000 with men having an average savings value of £73,600 and women with a savings value of £24,900. These figures relate to the cash value of […]

Lifetime allowance 2021/22 The pensions Lifetime Allowance (LTA) caps the upper level at which tax-free cash can be withdrawn from your pension savings at the rate of 25% and the LTA is also used at age 75 to make a tax charge for the excess amount over the LTA if you have an excess. This […]

How much do i need to retire on uk We need liquid assets to buy food and pay our bills. An example of an illiquid asset is a house or flat. We cannot take a brick from our property and use it to pay for food at the supermarket! Retirement savings need to be liquid […]