The increased cost of financial advice and limited availability of it are likely to be behind the fall in the number of people transferring out of defined benefit (DM) schemes into defined contribution (DC) arrangements, Broadstone says.
It comes after data released by the Financial Conduct Authority (FCA) yesterday (6 October) showed that the number of DB to DC transfers fell to 12,895 for the first six months of 2022. The number of transfers in H1 this year recorded in the regulator's latest retirement income market data are in stark contrast to the 20,451 that were carried out in the same period two years prior. "The fall in DB transfers is the culmination of a number of factors including the limited availability and increased cost of advice that has come about since contingent charging was banned," said Broadstone...
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