Insistent DB transfer clients on the rise, adviser warns

Problem 'needs addressing'

Tom Ellis
clock • 2 min read

Clients wanting defined benefit (DB) transfers to be "rubber stamped" by a financial adviser are on the rise, as more people are approaching retirement post-pension freedoms, an adviser has said.

IFS Wealth & Pensions director Alan Chan said he has seen more people, particularly in the last two months, "come in off the street" and ask for their DB funds to be transferred to investments of their choosing within a self-invested personal pension (SIPP). Current rules surrounding DB transfers state a person aged 55 or over must access financial advice on a DB transfer if their total pension benefits involves a cash equivalent transfer value of £30,000 or more.  Chan said a lot of people expected the advice to be a short and cheap box-tick exercise, rather than an extensive advice ...

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