EDINBURGH financial advisory business Robson Macintosh is urging members of final salary pension schemes to think carefully before cashing in benefits on the back of inflated transfer values.

Earlier this year technology provider Origo, which facilitates pension transfers for over 90 pension providers, said there was a 19 per cent rise in the amount of money flowing out through its service during 2016.

This is in part because scheme members are receiving greatly increased transfer values on their annual pension statements, but also because pensions freedoms introduced in 2015 allow pensioners to withdraw their savings as cash.

Jeff Lewis, director and pensions specialist at Robson Macintosh, said that as final salary schemes “remain the Rolls-Royce of pension arrangements” people looking to cash in their benefits “must consider many factors and in most cases our review processes and analysis would fully support a no-change position”.

“Many people are finding they presently have a seven-figure entitlement should they decide to transfer from their current or ex-employer’s final salary pension scheme,” he said. “The glare of pension-millionaire status should emphasise to everyone to be on top of their retirement planning and ensure what they have is appropriate for their future life.”