Employees Offered Lump Sums to Abandon Pensions

As pension costs increase for businesses, some employees are being offered lump sums to give up their final salary pensions.

Reports are growing that more and more employees are being asked if they would like to swap their pensions for cash, however advice from the Pensions Regulator says that people may be better off retaining them.

Tempting Offers

Some of the amounts being offered to employees are tempting to say the least, and a number of firms are offering 35 times the amount of pension income as a lump sum. This could cause problems in the long term as employees could find out that the pension they traded is worth much more than the amount they received at the time.

The Telegraph has more information on the trend of swapping pensions here.

If you would like advice on your pension, please get in touch, or take a look at our pensions services here.