Fear that defined benefit (DB) pension schemes may be unable to meet their long-term liabilities is driving demand for pension transfers, research from Old Mutual International (OMI) has found.
Aviva is looking at offering advice to UK customers looking to transfer out of their final salary pensions in response to rising consumer demand.
Pension scams, DB schemes and retirement support should all feature in the party manifestos the UK political parties publish ahead of the snap election on 8 June, the Pensions and Lifetime Savings Association (PLSA) has said.
Old Mutual Wealth’s David Denton talks about how the shock 25% Qrops charge imposed by the UK last month will affect retirement planning in the UAE.
The sharp increase in people transferring out of defined benefit (DB) pension schemes poses risks for investors and the industry, says Tom McPhail, head of policy at Hargreaves Lansdown. His warning comes as the UK’s pension transfer industry remains under close regulatory scrutiny.
UK advisers remain wary of defined benefit (DB) pension transfers due to the risks associated with challenges to historic advice, research has found. This is despite two thirds of advisers expecting a “big increase” in client enquiries about DB to DC transfers over the next 12 months.
UK insurance giant Prudential said it will begin offering clients advice on the increasingly contentious area of defined benefit (DB) pension transfers.
The UK government is open to considering a relaxation of the current rules around defined benefit pension transfers where the saver’s entitlement is quite small, a new consultation paper released on Monday showed.
The UK government has suggested softening the rules on how defined benefit (DB) pension schemes should adjust payouts for the impact of inflation in a new report on tackling challenges facing the sector.
The UK’s Financial Conduct Authority has issued a warning notice to an unnamed individual for poor advice given to more than 700 members of defined benefit (DB) schemes that left them at “serious risk of unsuitable outcomes”.
The Bank of England (BoE) has cut interest rates by half to 0.25%, adding more pain to pension savers already hit by years of low returns.
The UK regulator is planning to take a fresh look at how it calculates levels of redress when unsuitable advice is given on the transfer of defined benefit (DB) pension schemes. While advisers claim it’s not just DB schemes that are facing issues, with some defined contribution (DC) pension transfers also proving problematic.
