BT Final Salary Pensions


Why now is a good time to consider transferring your BT Pension (BTPS)

Already in 2018, the BT Pension Scheme (BTPS) has been in the headlines on more than one occasion. With how it plans to deal with an estimated £14bn pension deficit, through to reports of BT closing the Defined Benefit scheme for 10,000 managers.

And so, it is easy to understand why a growing number of people would be looking at their BT pension and considering the options available to them.

As with many Final Salary/ Defined Benefit pension schemes in the UK, there has been an increasing number of people looking to understand whether it is best for them to stay in the Final Salary scheme or whether it would be best for them to transfer out of the scheme.

We offer free consultations to help you understand your options; to discuss your pension arrangements and help answer some of those questions.

Give us a call to arrange a free consultation with a pension specialist – either over the phone or face to face.
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Record transfer values & what it means for you…

Like many of those with Final Salary pensions you may have seen coverage in the press regarding Final Salary Pension Transfers. Or you may have spoken to colleagues who have transferred out of their Final Salary Pension scheme.

Record transfer values have contributed to a large increase in number of people looking to transfer their defined benefit pension; with some schemes offering 33-40 times what the annual retirement income would have been.

But what does that mean for you? Are you eligible? Should you transfer your BT pension? What is your pension worth? And what are the risks and benefits to transferring out of your Final Salary scheme?

What are the benefits in transferring out of my Defined Benefit Scheme? 

Some of the benefits include:

  • High Transfer Values at present: Transfer values have increased markedly due to falling bond yields. In many cases, the values offered are thirty-to-forty times the annual pension the member is entitled to.
  • Flexibility in how you can take benefits from your pension: ‘Pension freedoms’ introduced in 2015 have given a lot more flexibility around when and how benefits may be taken from pensions. Gives the ability to take higher income early in retirement; or perhaps the ability to take tax-free cash from the fund while still working to meet other financial aspirations
  • Better Legacy/ ‘Death Benefits’: transferring gives greater ability to pass pension funds down to the next generation.
  • Tax Efficiency: more income flexibility allows more capacity for tax planning

Final Salary Pension Transfers - Key Numbers PNG

Why are others transferring? 

There are many reasons for the upsurge in transfers out of defined benefit schemes, including the benefits listed above.
Introduction of pension freedoms in 2015 has allowed greater flexibility and control over when and how benefits may be taken (following transfer to a defined contribution alternative). And, to a certain extent, it grants greater control over income tax in retirement.

For many clients, we have found a key driver for ultimately deciding to transfer has been the ability to cascade pension assets down to the next generation, carving out the ability to leave a – usually tax-efficient – legacy.

What is my pension likely to be worth? 

As mentioned, some schemes have been offering Transfer Values of 33-40 times what the annual retirement income would have been. And so, for someone that was due £5,000 each year in retirement, their Cash Equivalent Transfer Value could be as much as £165,000 – £200,000. If you haven’t yet requested a Transfer Value, we can help you obtain this from your pension administrator.

Should you transfer? 

Simply put, everyone’s circumstances are different. Transferring a pension is certainly not for everyone and the advice can often be to remain within the security of the scheme. Thankfully getting advice is not as difficult or daunting as you may think.
We offer free initial consultations to help you understand your options. These can be face to face, over the phone or video call, if more suitable. To book your free consultation:


Complete our > Contact Form

Call us on: 0141 328 3916

Email us oninfo@glasgowwealth.co.uk


Who do Glasgow Wealth advise?

At Glasgow Wealth, as Independent Financial Advisers, we specialise in Pension Advice & Retirement Planning; Investment Management; Inheritance Tax & Estate Planning.
Based in Glasgow but serving clients throughout Scotland and the UK – Glasgow, Edinburgh, London, Aberdeen.

Some other examples of schemes below:

  • BT Pension Scheme
  • Tesco Pension Scheme
  • RBS Group Pension Scheme
  • BP Pension Fund
  • Barclays Bank Retirement Fund
  • BBC Pension Scheme
  • Lloyds Bank Pension Scheme
  • Diageo Pension Scheme
  • Scottish Power Pension Scheme
  • BAE Systems Main Scheme
  • Alliance Boots Pension
  • Scottish Hydro-Electric Pension Scheme
  • Comet Pension Scheme
  • Shell Pension Fund (SCPF)
  • Scottish Amicable Pension Scheme
  • Scotia Gas Networks
  • Unilever UK Pension Scheme
  • Co-Op Group Pension Scheme

Many deferred members of Defined Benefit schemes are considering a transfer out of the scheme. Helped by recent high transfer values, there can be a compelling case for transfer. However transferring out of a Defined Benefit/ Final Salary Scheme is not for everyone – which reinforces the need for robust and independent financial advice.


For more information:

-> Pension Advice & Retirement Planning 

-> How much is your Pension Worth? – Pension Calculator 

-> Final Salary Pension Transfers – are they worth the risk? 


Tags: BT pension advice