DO your research, this is paramount, its your money, your bread and butter and your pension.It is there to support you for the rest of your life. Whatever professional advice you get you need to back it up by doing some research of your own.
DON’T just transfer, “It’s a big lump sum, The scheme is going into the Pension Protection fund anyway”, yes there are many reasons to transfer but there are many reasons not to, income for life, guaranteed income, safety net. If in doubt refer to point 1 and Do your research.
DO seek professional advice, this is the hard part, who to trust? What are they getting out of it? Where do their loyalties lie? I don’t trust Financial Advisors. How much are you charging? They only get paid if we transfer so its in their best interests to tell us to transfer. Like any advice you need to be comfortable with it and who you are talking to, a recommendation to a trusted advisor is always a good start.
DON’T just do what your mates/colleagues are doing. You are not them and they are not you, advice from your mate down the pub on where to get your car serviced or when best to plant your daffodils for next year is fine but when it comes to something as personal as this you are an individual and you need to be treated as such.
DO make sure the advisor you engage with is qualified to talk to you about the pension transfer you are wanting to do. They must be a Pension Transfer Specialist You can check this on the FCA register, although its not that easy. When you look at the firm scroll down and search under ‘Permissions” and look for the box below;
If the firm has the permissions to carry out Pension Transfers then they are able to advise you. Some firms who are financial advice firms are speaking to workers and then they are ‘introducing’ the advice to another firm who has the above permissions. Quite frankly they are only going to get paid if you transfer so you know what the advice will be from the outset. Avoid this at all costs.
DON’T rush in to a decision, there is still plenty of time, well perhaps not plenty but enough at least. Don’t be led to believe that if you don’t make a decision very quickly you will loose out. Its tough to have to make such a huge decision so late in the day but take your time and consider it very carefully so once you have made the decision you don’t feel regretful or anxious that perhaps it was the wrong decision.