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

Why the real problems of the pensions dashboard are yet to start

Why the real problems of the pensions dashboard are yet to start

'Its aims seem not only less relevant but potentially problematic'

James Floyd
clock 23 June 2025 • 5 min read
Turning data into dialogue: Helping clients visualise retirement realities

Turning data into dialogue: Helping clients visualise retirement realities

'Data is more than just a collection of figures, it's a powerful tool for engagement'

Joshua Croft
clock 20 June 2025 • 3 min read
Average pension transfer took just 11 days at tax year-end

Average pension transfer took just 11 days at tax year-end

Origo says transfer times decreased around tax year-end with half taking seven days or less

Jasmine Urquhart
clock 17 June 2025 • 2 min read