Principle 6 Understand the Costs of Pension Transfer
Published / Last Updated on 07/06/2019
We will give you a written document (single sheet) as a Transfer Value Comparator (TVC)
Which gives you explicitly:
- The Pension Fund Transfer Value
compared to
- The Cost To Buy An Annuity On the Open Market For The Defined Benefit/Safeguarded Rights Pension That You Have Built Up
The Transfer Value is usually lower than the cost to buy your accrued pension on the open market. This is because the transfer value has usually been discounted down to allow for future investment growth that may or may not be achieved.
