As of April 2015, British pension savers with un-funded defined benefit schemes in place will be prevented from transferring their savings to alternative schemes which could potentially offer better terms, rates of return, stability and flexibility.
This includes those that have worked in:
These sectors comprise hundreds of thousands of employees who could potentially see their future retirement plans thrown into disarray.
With the current UK pension deficit exceeding £1 trillion, the Government will in all likelihood continue to reduce the annual benefits which future pensioners can expect, while simultaneously extending the retirement age to ease the pressure on the huge shortfall.
The truth is, if the money isn’t there to begin with, the only possible outcome is that thousands of people who have been relying on their pension to take care of their retirement, will be forced to continue working to support themselves, or else face an impoverished end to their days after a life time of working and saving.
With the uncertainty and continual moving of the goal posts, many public sector employees are looking at alternative options before the deadline hits. Those who plan to retire abroad, or who already live overseas must consider looking at QROPS. The benefits of such a scheme are multiple, and removing the savings from the murky waters of the UK market into a stable overseas fund is finding favour with Brits across the world.