Pensions - Articles - TPR contacts 14 schemes on pension transfer value reductions

 “Headlines on pensions have again come front and center and may cause some nervousness to consumers confused on whether or not they should be transferring from their defined benefit schemes. This decision is often the most important financial decision a person will make and should not be a knee-jerk reaction.

 “Historically-high transfer values may look appealing, but a transfer means taking on a number of risks including, inflation, volatility and ensuring you have enough savings to sustain your retirement. It’s mandatory to seek financial advice for any transfer value over £30,000. This is an important safeguard as an adviser can help consumers consider how their financial position will be affected by their decision.

 “The Pensions Regulators is reminding scheme Trustees of their responsibilities* in relation to transfer values, which is a logical course of action given the volume of transfers from some schemes. Trustees should be monitoring and reviewing the appropriateness of the assumptions underlying the calculation of transfer values, and there is no suggestion that Trustees aren’t taking this very seriously.”