Case Study

Defined Benefit & Defined Contribution Pension Consolidation

Couple hugging and smiling. Both are wearing purple shirts.

Steve (61) was referred to Florin Pensions by his New York based accountant for advice on his UK defined benefit (DB) pension (with a cash equivalent transfer value (CETV) of £615,000) and his two UK defined contribution (DC) pensions (combined value of £190,000). Steve wanted to explore transferring the CETV from his DB pension and his two UK DC pensions to a UK Self Invested Personal Pensions (SIPP) and then invest his SIPP in a USD denominated portfolio.

It is widely accepted that in most cases, it will remain in the best interests of a client to retain their DB pension for the secure benefits it will provide in retirement. Florin Pensions partnered with an independent UK pension transfer specialist to review Steve’s personal circumstances, attitude to transfer and investment risk and the generosity of the CETV offered by the DB scheme.

After a detailed review, and based upon Steve’s specific case, a DB transfer was recommended by the UK advisor. The DB and DC transfers proceeded using a UK SIPP provider Florin Pensions works with that has years of experience working with US resident clients. After the transfers were completed, Florin Pensions assisted with the investment of his SIPP into a USD portfolio managed by a US/UK fund manager Florin Pensions partners with.