PIMFA
WHAT are Defined Benefit Pension Transfers?
A defined benefit pension scheme is a type of workplace pension that gives you a guaranteed income for life. Given the consequences for clients and advisers – and the financial services sector in general – when defined benefit (DB) pensions are being transferred, along with recent events in that sector, it is understandable the area of defined benefit pension transfer has come under closer scrutiny.
WHY are Defined Benefit Pension Transfers important?
The issue of pension provision cannot be addressed in isolation from the consequences of both sides of the debate; consumers with suitable provision being given un/suitable advice or consumers with insufficient provision not having the resources/knowledge to increase their savings to a sufficient level.
The reputational damage and actual financial cost implications from another pension review process or PPI type situation (default index tracking or passive funds or SIPP charges etc) would be immense for the financial services sector.
The challenge is for market operators to provide the tools so clients can meet their need for suitable provision, while also meet the requirements to ensure existing provision remains suitable but also putting in place suitable new products for those still not making full provision for their retirement.
Click on the guide below to learn more about DB Transfers
