Final Salary Scheme Case Study
A Lighthouse adviser is approached by a client who has a final salary pension with a previous employer.
The client shows the adviser a letter that he has received from his old employer advising that they are
making a limited term offer to increase the transfer value as an inducement to leave the scheme.
The adviser has never dealt with this type of case before and calls Lighthouse+. We send her a final
salary questionnaire and ask her to complete this with the client and return it to us with a fact find
and risk profile. On receipt of this, Lighthouse+ clarifies relevant information with the client and with the scheme.
We are able to make a positive recommendation to transfer as the enhanced transfer value is a generous one.
In addition to this, the client has a high attitude to risk and the deferred pension is only a small part of
his retirement planning. The recommendation is sent to the client, and Lighthouse+ speaks with him to explain
the advice. He accepts the recommendation and transfers to a private plan.
The case pays a gross commission of £10,000 of which the adviser receives £6,000 minus her standard rate of group retention.
Why consider leaving a final salary scheme?
- Concern about the solvency of a former employer.
- The employer is offering an inducement to leave.
- They might need to access benefits before the scheme allows them to do so.
- They may have a very high attitude to risk.
- The death benefits in the scheme may not be appropriate.
Money Purchase Scheme Case Study
For further information contact Mark Wilson,
Head of Lighthouse+ Pension Services
Tel: 0845 872 3999 Mobile: 07834 751 931
Email: mark.wilson@lighthouseplus.co.uk