Rising annuity rates result in DB transfer compensation cuts

Rate rises mean people can secure a higher retirement income

Holly Roach
clock • 1 min read

Defined benefit (DB) pension savers may be due "significantly less compensation" after transfers based on poor advice as a result of soaring annuity rates, analysis by OAC reveals.

OAC - part of the Broadstone Group - revealed many people who have been previously "ill-advised" to transfer out of their DB scheme are likely to be due less compensation as a result of the rising annuity rates over the last 18 months. The firm said the recent increase in annuity rates means transferors are projected to secure a "historically high" level of guaranteed income from their remaining pension pot which will "minimise the financial disadvantage for those who are seeking compensation after being poorly advised to transfer their pension, and therefore the compensation they are du...

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