Joan was 62 and had worked for her employer for 35 years before being made redundant in 2011. As part of her redundancy, Joan received an increased exemption and waived her right to a tax free lump sum from the pension scheme.

We reviewed all of Joan’s information including her pension, current income, state pension entitlements, savings and other assets.

Joan Case Study

When we outlined the options available to Joan, taking into account her very short timeframe to the retirement age of her scheme as well, as what the lump sum waiver meant for her, we advised that transferring away from her employer Defined Benefit Scheme was not going to be financially beneficial to her.

Joan’s main interest was in the ability to leave her pension as an inheritance to her children. Although this was an advantage, it did not justify the decrease in overall income in retirement which would have resulted had Joan transferred the pension into her own name prior to the retirement age.

Joan is due to reach the retirement age early this year. We are currently advising Joan on some life assurance options which will achieve the inheritance for her family which Joan wanted.

 If you would like to find out if you are eligible to cash in your Defined Benefit pension, get in touch and get advice.