Do you hold an Evonik Industries Pension?
The Evonik Industries pension scheme currently has the 6th largest pension deficit throughout the world. According to MSCI’s research, which examined the pension funding status of 5,300 companies. Evonik Industries has a 32.5% gap between its pension obligations and the resources set aside to fund them. If you hold an Evonik pension then you will want to know the implications and severity of this position.
What does it mean?
First of all, looking at the other major corporations with huge pension deficits such as British Telecom, the move is likely to be one of decreasing their accountability. As a result, not paying out pensions in line with their previous commitments.
Put simply, there is not enough money in the pot to pay out a final salary scheme. Consequently, promises made yesteryear are totally unaffordable and something has to be done.
What can you do?
- Transfer your pension into an international Sipp. 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.