Halliburton Pension- Background
Halliburton Company is an American multinational corporation. One of the world’s largest oil field service companies, it has operations in more than 70 countries.It owns hundreds of subsidiaries, affiliates, branches, brands, and divisions worldwide and employs approximately 50,000 people
Unlike a number of companies, The Halliburton defined benefits/final salary pension scheme is one of the few well-funded pension schemes in existence.
Halliburton Pension – What is a Defined Benefit Scheme?
A Defined Benefit/Final Salary pension scheme is a type of pension plan which guarantees an income for life pre-determined by;
- employees earning history
- tenure of service and age
Often known as the “golden handcuffs” of pensions offers certain individuals the perfect security in retirement. For others, however, there are a number of reasons why transferring out would be the best option.
While every individual’s position is unique, there are a number of the factors relevant for everyone when considering whether to transfer or not.
Halliburton Pension: Factors that would suit ‘not to transfer’
- You have no other private pensions and very little savings.
- You have a low capacity for loss in that there are no other significant assets to provide as a buffer in times of poor investment returns.
- You have a significant amount of personal debt, this could be via a mortgage.
- You have no state pensions that might provide security in retirement.
Halliburton Pension: Factors that would suit ‘to transfer’
- You no longer reside in the UK and have no intention of returning.
- The transfer value is high based on your contributions or the scheme has enhanced the transfer value. You have sufficient other savings and you feel that you could better manage this money elsewhere or you would prefer to use some of the capital for alternative projects.
- You have sufficient other pensions including defined benefit schemes
- You have strong ‘lifestyle’ reasons for why you would want to give up the Halliburton pension with defined benefits in favour of a personal pension arrangement
Halliburton Pension: What are my options?
- Transfer your pension into an International SIPP or a QROPS if you have ‘Lifetime Allowance’ (LTA) allowance concerns. Any defined benefits pension will come up against severe scrutiny before being allowed to transfer and rightfully so. The process is long and arduous but the first step should be to speak to an Independent Financial Adviser.
- If the transfer value is more than £30,000 and you wish to transfer you will need to take independent advice about transferring your benefits out from an adviser who is authorised by the Financial Conduct Authority. If you do not get advice the transfer cannot take place.
- With bond rates still incredibly low, Defined Benefits transfer values are a very attractive proposition right now with some values totalling 40 times that of the actual worth.
To find out more about your pension position and options. Contact Harrison Brook today to speak with an advisor to discuss your options. Harrison Brook is a cross-border pension transfer specialists. We can explain and assist in discovering the options available to you. Taking you through the process of gaining valuations up to placement into a suitable solution.