09 March 2009
According to industry experts, thousands of people are putting
their pension savings in jeopardy by accepting incentives to leave
company pension schemes.
Driven by soaring deficits, increasing numbers of companies are
offering money to former employees to transfer final salary type
deferred pensions into personal schemes, although leaving a pension
scheme offering a defined benefit for one reliant on investment
performance could be a risky move.
Pensions expert Ros Altmann said: "You are transferring the risk
from the scheme to yourself.. both investment risks and annuity
risk, as you do not what annuity rates will be when you have to buy
one at retirement."
