Should you cash in your final salary scheme pension?
Opting to cash in a DB scheme is not a decision to be taken lightly. It is for good reason that the regulator has taken a keen interest and warned advisers to take a very cautious approach when talking to potential transferees. Its tightened rules have seen a number of advisers exiting the market, and latest figures show that pension transfer activity is starting to slow – yet many savers will continue to be tempted by the eye-watering lump sums on offer. There are certain circumstances in which transferring can make sense, but getting professional pension advice is essential. You need to have a clear understanding of the risks of swapping safeguarded benefits for flexible ones.