Be very careful.
By any chance, is this "finance agent" trying to sell you a PRSA, for which s/he will receive commission?
A solvent Defined Benefit scheme is very valuable as you are guaranteed to get the promised pension, regardless of investment conditions in the future.
Transferring from a Defined Benefit Scheme to a PRSA should only be done in a very limited set of circumstances and after careful examination of both sides. Here's a few examples - do any of them apply to you?
- If the Defined Benefit scheme is insolvent, it may not be able to provide the guaranteed pension promised.
- If the transfer value quoted is so high that you could transfer into a low-risk PRSA and still get a higher pension. (Very rare in the current climate.)
- If the flexibility of an Approved Retirement Fund at retirement is of huge importance to you, to the point that you're willing to forfeit Defined Benefit scheme guarantees to get it.
I's suggest you ask the finance agent to provide you with a list of reasons why s/he would recommend that you transfer from the Defined Benefit scheme to a PRSA, and a list of possible downsides. I'd love to see the reply.
Liam D. Ferguson