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New Flat rate UK State pension affects your Final Salary DB scheme

Thousands of Final Salary Pension members will lose out under the new Flat rate UK State pension which comes in April 2016. But expats still have the option to transfer to a QROPS

CARDIFF, U.K. - Feb. 19, 2016 - TelAve -- Many expats are blissfully unaware that the UK Government has the power to do what they like to their UK Final Salary pension. This has been highlighted by the effect of the new Flat rate UK State pension on UK Final Salary pensions. Certain groups are going to be considerably worse off under the new pension legislation.

It will affect anyone who has paid into a Final Salary scheme during the Eighties and Nineties, and who now faces the loss of inflation proofing of a large part of their pension.

One of the worst groups hit will be members of the Teachers' Pension. It is also worth noting that this pension scheme is one of the ones now banned from transferring to a QROPS, giving the UK Government free reign to do as it wishes to members' benefits in the scheme.

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You will you lose a valuable element of your pension under the new state pension.

The Teachers' Pension scheme and the DWP have confirmed the fact that the 'contracted out' element of the pension will indeed not be inflation-linked. The average loss could be as much as £30,000.

This will also affect private-sector workers as much as those in the public sector. If this is taken into account when undertaking a QROPS transfer comparison, many more people may find that a QROPS transfer is in their interest.

Have a TVAS undertaken now. Transfer values still remain at an all-time high given that interest rates remain at an all-time low.

For more information on Final Salary QROPS transfers, go here:!final-salary-qrops-transfers/cvwp.

For further details, contact:

Source: Waterstone Investment Associates

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