With some aviation companies prepared to sack large portions of their work force in one go, it is conceivable that at some point in the future attention might drift to other cost cutting measures.
You only have to watch the news to hear about another large previously “safe” pension closing. Well published examples are the closure of BHS, British Steel and FlyBe. Another example is NAPs which is closed to future accruals.
One consequence which is listed on The Pension Regulator website is a cap on the maximum benefits you can receive. There is a sliding scale, however this is a direct quote:
“From 1 April 2020, the cap at age 65 has been set at £41,461. This is an increase of 3.6% from the 2019/20 cap which was £40,020. The increase reflects the level of wage inflation over the period. As the cap is applied before your compensation is reduced to 90% of our levels, the actual amount you would receive as a capped member retiring at 65 is £37,315.”
Through sound Financial Planning and if appropriate via our Pension Transfer specialists we can assist you.
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