'Change the law' so trustees cannot shrug off adviser recommendations - PFS

Potential undervaluation

Hannah Godfrey
clock • 3 min read

A pension scheme trustee has transferred a client's pension despite clear warnings from the adviser this was not their recommendation - a scenario that should provoke a change in the law, according to the PFS.

Money Minder managing director and Chartered financial planner Ray Black told Professional Adviser that a 62 year-old man came to him to obtain his pension transfer value from a defined benefit (DB) scheme he had from working in a factory some years ago. At the time, the man was living with his partner, though the two were not married, and was £30,000 in debt. He had suggested he wanted to use his pension money to pay off his debt. The transfer valued offered was around £130,000. Black felt the actuaries had valued the pension at less than it was worth, arguing the value should have b...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Inflation shocks driving another long uptick in annuity sales

Inflation shocks driving another long uptick in annuity sales

‘Customers should be careful that this is the right decision for them’

Hope Coumbe
clock 23 April 2024 • 1 min read
Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read
Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read