The Financial Conduct Authority (FCA) and the Pensions Regulator (TPR) believe that it will be in most people’s best interests to keep their DB pension. If you transfer out of a DB pension, you cannot reverse it. It is important that you understand the risks to help you make an informed decision.
For some DB members, taking a transfer to a DC arrangement might be better suited to their particular circumstances. It also allows individuals to access the pension flexibilities that were introduced in the UK from April 2015. If you are a member of one of BAE Systems’ DB schemes and are considering transferring your benefits to a DC arrangement we would urge you to consider this option carefully and take independent financial advice on whether this is in the best interests of you and your family, both in the short and longer term. 
You will need to consult with an approved financial adviser if the value of your benefits is greater than £30,000 and there are normally restrictions on transferring if you are within one year of, or above, your normal retirement date. Even if the value of your benefits is below £30,000 and you wish to consider a transfer, it is strongly recommended that you consult an independent financial adviser, even if this may not be a statutory requirement.
Information on the FCA website will help you understand the value of a DB pension and what to think about if you are considering transferring out of a DB pension scheme. Transferring a DB pension may give you more options for your retirement, but it is not right for everyone.
The FCA has recently updated its resources aimed at helping consumers better understand financial advice on transferring from a DB to a DC scheme. There are five short videos covering:
  • Pension transfer advice: what to expect
  • Mandatory information and choosing an adviser
  • Getting to know you
  • Adviser research and communication of advice
  • Post advice
For more information also refer to the pension guides on the BAE Systems pensions website covering ‘pension flexibilities’ and ‘transferring out of a defined benefit pension scheme’ and visit the MoneyHelper website.