APFA calls for pension transfer value 'abolition or radical overhaul'

TVA is wrong approach post-pension freedom

Carmen Reichman
clock • 2 min read

The Association of Professional Financial Advisers (APFA) has called for the abolition of pension transfer value analysis (TVA) as a major determinant of whether a transfer is good for a client.

The organisation said given the new flexibility offered by pension freedom, basing a decision purely on the value of a pension pre- and post-transfer was the wrong approach for many clients. In many instances such an approach was a potential waste of time while adding unnecessary cost for clients, it said. Pension freedom reforms in April last year gave all defined contribution pot holders over the age of 55 free access to their savings, subject to taxation. Major changes to death benefits were also announced as part of the reforms. Pension assets can now be passed on to beneficiar...

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 Pensions

'Understandable' people are pensions dashboard 'sceptics'

'Understandable' people are pensions dashboard 'sceptics'

Industry experts say there will always be a role for dashboards

Holly Roach
clock 03 May 2024 • 1 min read
Big difference: Ways to tackle the growing pensions gender gap

Big difference: Ways to tackle the growing pensions gender gap

'Of course, for single women, the pension gender gap absolutely matters'

Lisa Webster
clock 03 May 2024 • 3 min read
Boring Money and Wealth Wizards link to plug advice gap

Boring Money and Wealth Wizards link to plug advice gap

Strategic partnership to improve access to financial advice

Jenna Brown
clock 01 May 2024 • 2 min read