Financial Planning Today
Pension transfer specialist Tideway has claimed that UK workers could collectively be up to £25bn out of pocket if they are persuaded not to take advantage of final salary transfer offers by negative publicity on DB transfers.
City-based Tideway is concerned this is being driven by what it calls the FCA’s “negative stance” on DB transfers that “could also create adviser bias towards recommending consumers to stay in schemes”.
Responding to the FCA’s recent consultation paper on DB transfer advice, Tideway’s research counters the regulator’s assessment of potential consumer harm and negative stance on the benefits of DB transfers which Tideway argues ignores the “significant economic benefit brought to many consumers who transfer”.
Tideway Partner James Baxter said: “If you took 100 people with personal pension funds they had saved and accumulated through a long career and asked them if they would like to swap them for the equivalent defined benefits in the RBS scheme based on current transfer values, we don’t think you would have any takers, nor any advisers telling you to do it.”
12 November 2019