Pensions - Articles - DB to DC transfers will increase warn experts

 When asked if the £30k Enhanced Transfer Value (ETV) threshold for a DB to DC transfer to proceed without advice, was a valid method of control to protect members, 54% agreed, or strongly agreed, 26% were undecided and 20% disagreed.

 The experts also warn that the risk of scams will increase with 92% of the respondents agreeing (50% strongly agreeing) that the rise was due to the increasing freedoms for pensions.

 Nigel Pearce, Life and Pensions Director, Equiniti, said: “While some members might wish to press ahead with DB to DC transfers in the face of advice to the contrary, it remains to be seen to what extent any adviser and/or provider would be prepared to become involved with such a transfer. It may well be that fear of future criticism, or even litigation, will mean that advisers will choose not to handle this business. We also have to hope that, in its enthusiasm to accommodate individuals looking to take advantage of the new flexibilities, the Government does not do away with protections that are needed now more than ever to protect those same individuals from scammers.”