10 things to consider after a defined benefit transfer - Equilibrium

New enquiries: 0161 383 3335
Existing clients: 0161 486 2250

Get in touch
Ask us a question

    Financial planning | Other

    10 things to consider after a defined benefit transfer

    So, you have made the irreversible decision to transfer your defined benefit pension scheme, and in doing so you have accepted a lifetime of managing risk. You were prepared for the possibility that you would experience ups and downs in markets, but now that big losses have become a reality, how has it made you feel?

    The good news is that as long as you have a thorough, well-thought-out financial plan, you should still be able enjoy the rewards, flexibility and freedom that a transfer brings regardless of the economic climate.

    However, if you don’t have the strategies in place to weather a few storms, there is a real risk that you could run out of money.

    So, what are the issues you should be reviewing if you have recently transferred out of your defined benefit pension scheme?

    1. Risk

    Are you still comfortable with your investment strategy, especially after experiencing the current volatility? You might want to consider whether a different approach maybe more suitable for your risk tolerance.

    2. Volatility

    Investment volatility is normal, the trick is to take advantage of the opportunities it presents.

    3. Your plan

    Following the recent market falls, have you reviewed your financial plan? Does it need to change?

    4. Know thy numbers

    It’s important that you know the range of returns that your portfolio is likely to deliver and what the outcomes might be.

    5. Your time horizons

    Does your investment strategy take into account when you may look to access your funds? Should you delay retirement or can you afford to quit your job earlier.

    6. Income strategy

    A well thought out income strategy, taking into account all the various tax implications, could make a huge difference to your wealth.

    7. Managing your expenditure

    For some people, having a substantial pension pot can create an enhanced feeling of wealth. This can lead to expenditure increasing beyond the original budgets. A thorough financial plan can help you to make sure you aren’t overspending and creating problems for the future.

    8. Spouse

    If your spouse hasn’t been involved, would they be comfortable taking on the responsibility if you weren’t there?

    9. Lifetime allowance

    Has the transfer created a potential issue with the Lifetime Allowance? Have you considered whether you are eligible to apply for protection?

    10. Expression of wishes

    One of the drivers behind many transfers is to create a legacy for others. Unfortunately, in many cases, the expression of wish forms often don’t provide the level of flexibility needed or, still worse they are not completed at all.


    If you would like to learn more about life after a defined benefit pension transfer, click here to watch the recording of our recent live stream ‘life after a defined benefit transfer’.

    Or, if you would a free, no-obligation review of your financial plan please get in touch.


    The content contained in this blog is intended solely for the entertainment of the reader and in no way constitutes advice. The value of your investments will fall as well as rise and are never guaranteed. Investors may not get back the amount originally invested. Tax treatment is dependent on individual circumstances and may be subject to change in the future.

    string(4) "test"
    Group 6 Created with Sketch.

    In order to get the best viewing experience of this website, we recommend downloading one of the browsers below: