Pensions - Articles - DB pensions advice market must not go into lockdown


As part of a new guide for firms on supporting customers during the coronavirus crisis, the FCA has set out some new guidance on ‘expectations of advisers giving defined benefit transfer advice’ during the coronavirus crisis.

 Steven Cameron, Pensions Director at Aegon said: “As the FCA rightly highlights, the coronavirus crisis could prompt more people to take advice on transferring from a defined benefit to a defined contribution scheme. For some, this might be the right thing to do, and advisers need to be able to meet that need particularly where delaying could be to the significant detriment of the customer.

 “The FCA has set out some potential misconceptions for advisers to face up to when advising clients. As it says, an increase in a transfer value doesn’t necessarily make transferring ‘better’. Similarly, death benefits are not always higher in the defined contribution world. Some clients may be particularly drawn to transferring if they believe their employer is ‘going under’ and here, the FCA reminds advisers to provide a fair assessment of the Pension Protection Fund.

 “This guidance comes at a time when trustees may be considering deferring quoting or paying transfer values for 3 months. While some trustees may need to take time to review transfer calculation bases, the FCA is clearly and helpfully not envisaging a blanket ban. For individuals planning to transfer to draw a flexible income in the short term, or in ill health with genuine concerns over death benefits, it’s important that this market doesn’t go into lockdown and is allowed to continue to function.”

 https://www.fca.org.uk/firms/pensions-and-retirement-income-our-guidance-firms
  

Back to Index


Similar News to this Story

PPF marks 20 years of protection in its Annual Report
The Pension Protection Fund (PPF) has published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial p
DC pensions continue to back Net Zero despite ESG backlash
Barnett Waddingham’s latest DC Sustainability Report finds a 34% increase in allocations to funds with a climate target in the growth stage since orig
Chancellors focus on guided retirement for pensions savers
Ahead of the Mansion House speech to be delivered by UK Chancellor Rachel Reeves on the evening of 15 July, Glyn Bradley, Chair of Pensions Board at t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.