New FCA rules on pension transfer advice will bring about a significant change in the conversations between scheme members and their advisers, according to a joint policy paper from LCP and Royal London.
Since 1 October 2018, financial advisers have had to show their clients how the transfer value they have been offered by their company pension scheme compares with a ‘transfer value comparator' (TVC) - an estimate of the lump sum needed today to buy an equivalent pension at retirement to the one being given up. The two figures will be shown in the form of a bar chart, with the TVC figure almost always being the higher of the two. A key finding of the paper, What will the FCA's new rules mean for DB to DC pension transfers?, is that, for members 10 years away from retirement, the transfer...
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