We're delighted that Felix from leading North Devon wealth managers, Philiip J Milton & Co, is now a regular in our studio. Felix will be answering all your queries and updating you on all things concerned with the world of financial affairs.
This week Felix has some info on pensions. Have a read and then please let us know if you have any questions you'd like us to put to Felix in our next interview.
"Defined Benefit Pensions – Are you aware of the true value of these benefits?
Defined Benefit or Final Salary pensions used to be a common feature of the workplace which provided employees with a guaranteed income for life when they retired, often based upon their final salary. These types of pension were never fully funded and relied on a ‘promise’ from the employer that they would pay the pensions until the individual died.
Due to the vast cost to the employer, the majority of these schemes has now closed as each employee represents a future liability to the employer. Many schemes are offering transfer values to members, offering a cash lump sum in exchange for giving up their annual pension. These figures can be as much as 40 times the annual income.
If you want control over your benefits, seeking financial advice may be the best route for you." Felix Milton, Philip J Milton & Co.