Advisory community to benefit from DB-DC transfers by £3.39m a year

Helen Morrissey
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Financial advisers are expected to benefit from the new regime which allows transfers between defined benefit (DB) and defined contribution (DC) schemes to the tune of £3.39m per year.

The figures were part of a government impact assessment into the new flexibilities revealed in the March 2014 Budget. Members of DB schemes are now able to transfer to a DC scheme to take advantage of new retirement income flexibilities but only as long as they have received financial advice. The figure is based on the additional number of people expected to require advice as a result of the new statutory requirements. This is estimated at 2,900 per year and the estimated value of advice is set at £1,170. This is based on 7.5 hours of advice at a cost of £156 per hour. Governmen...

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