DB transfers can come at a cost to clients and advisers, so how should the industry deal with the predicted increase in demand following the introduction of pensions freedom? Nicola Brittain finds out…
Pensions freedom, due to come into force on 6 April, will give over-55s unconstrained access to their defined contribution (DC) pension pot. The freedoms are predicted to precipitate a rush of interest in transfers from defined benefit (DB) to DC pension schemes from clients wanting to take advantage of the new flexibility. DB schemes, also known as final-salary pensions, pay a guaranteed pension to a retired employee until they die. They typically pay one-60th of a salary per year of work, set at one-60th of the salary on retirement. The schemes normally include an inflation-based...
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