Transfer out

Transfer out

Transfer out of the LGPS is a major financial decision requiring careful consideration.

Although you have the right to transfer your deferred benefits out of the LGPS to a defined contribution arrangement offering flexible benefits, in our experience transferring out of the LGPS to a pension scheme where your benefits are linked to investment markets is unlikely to be good for your financial future unless you fall into some niche categories.

The niche categories include:

  • expert investors willing to take risks
  • if you need to access cash now
  • if you are single
  • those with a short life expectancy who want to leave big death benefits

If you’re thinking of transferring your benefits, make sure you check what you are losing out on, the costs associated with a transfer, and your prospects after transferring your LGPS deferred benefits.

We would suggest meeting with a financial advisor to go through your options.

Bear in mind, that you could even lose the lot through fraud and for unfunded public sector schemes, like the NHS, teachers, police and firefighters, transferring out is not even allowed.

In summary, a transfer out of the LGPS is a major financial decision requiring careful consideration and should only be done after taking financial advice from registered independent advisors.

For further information, visit the FCA Website, LGPS Member websiteMoney Helper website and the Pensions Regulator’s website.

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