APTA Appropriate Pension Transfer Analysis
Published / Last Updated on 11/12/2018
APTA Appropriate Pension Transfer Analysis is a full assessment when transferring or considering transferring a defined benefit pension scheme to a money purchase defined contribution pension scheme or personal pension looking at:
Outgoings and potential income needs throughout retirement.
Comparing projected incomes ffrom both the existing defined benefit scheme and any new money purchase defined contribution pension scheme or personal pension to enable you to understand your future cash flow needs both now, in retirement to your average life expectancy and beyond that to the point that you would run out of money.
It will also consider death benefits on a 'fair' basis and assess/compare the two options as well as looking at other funding options such as life insurance protection.
Your adviser must also include a Transfer Value Comparator (TVC) which is presented in graph format to demonstrate the real value of the defined benefit pension scheme and must contain:
- The Cash Equivalent Transfer Value (CETV)
- The Estimated Annuity Cost/value to replicate the existing pension scheme income
