The Pensions and Lifetime Savings Association (PLSA) has commented on the FCA’s latest consultation paper, Advising on Pension Transfers. The paper puts forward new proposals on advice relating to pension transfers where consumers have safeguarded benefits, primarily for transfers from defined benefit to defined contribution pension schemes.
James Walsh, Policy Lead: EU & International, Pensions and Lifetime Savings Association, commented:
“Nearly all (92%) defined benefit or hybrid schemes have received a transfer request in the last six months. These proposals go a long way towards ensure savers understand the losses they could suffer by leaving defined benefit schemes. We know that transferring out of a defined benefit scheme may not be in the members’ interest.
“The new comparison (the Transfer Value Comparator) will help to focus members’ minds. Defined benefit pensions provide scheme members with a guaranteed income for life – irrespective of how long their retirement might be. Therefore, it is essential that this guarantee is not given up without serious consideration and that appropriate financial advice is taken before any decisions are made.
“The consultation paper also includes some important details – for example – on the assumptions used for revaluation and indexation of DB schemes. We look forward to working with the FCA on these points.”
NOTES TO EDITORS:
ABOUT THE PENSIONS AND LIFETIME SAVINGS ASSOCIATION
We’re the Pensions and Lifetime Savings Association; the national association with a ninety year history of helping pension professionals run better pension schemes. Our members include over 1,300 pension schemes with 20 million members and £1 trillion in assets, and over 400 businesses. They make us the voice for pensions and lifetime savings in Westminster, Whitehall and Brussels.
Our purpose is simple: to help everyone to achieve a better income in retirement. We work to get more money into retirement savings, to get more value out of those savings and to build the confidence and understanding of savers.
Research undertaken on PLSA members between October and November 2016.
Lee Blackwell, Interim Head of Media & PR, Pensions and Lifetime Savings Association
T: 020 7601 1726, M: 07713 073 023, E: [email protected]
Kathryn Mortimer, Press Officer, Pensions and Lifetime Savings Association
T: 020 7601 1748, M: 07901 007713, E: [email protected]