More than 8 in 10 call for partial DB transfers in all schemes

A new survey has revealed 85% of respondents believed all DB schemes should allow partial transfers. The poll, carried out by financial education firm Wealth at Work, showed the need for greater better protection of pension savers, the firm said.Wealth at Work pointed to recent FCA research which it says showed less than half of advice given over transfer cases it reviewed in December was suitable. The firm said that even though regulated advice must be sought to transfer a DB pension if its value is £30,000 or above, there was no requirement to take ongoing advice once the transfer has been made and no guarantees that future income needs will be met unless the transferred money is managed well. Jonathan Watts-Lay, director of Wealth at Work, said: “This isn’t the only aspect I find concerning. “Even though regulated advice must be sought to transfer a DB pension if its value is £30,000 or above, there is no requirement to take ongoing advice once the transfer has been made and no guarantees that future income needs will be met unless the transferred money is managed well.“The numbers who suffer these risks are likely to be exacerbated by members with transfer values of less than £30,000, as they don’t need to take advice on the initial transfer or on how to manage the money going forward.” He added: “Offering partial transfers can be an efficient way for schemes to manage liabilities and can also help members avoid the cliff edge of total transfer or no transfer.” Mr Watts-Lay said there was a “duty of care to have a robust process in place to help members and employees understand the benefits and risks around pension transfers, as well as other risks faced at-retirement such as falling for a scam, buying inappropriate retirement products, paying more tax than necessary and ultimately running out of money”.

More than 8 in 10 call for partial DB transfers in all schemes

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