For anyone other than those with DB pension benefits of less than £30,000, who may be considering transferring their DB pension into a DC environment, it is the law that they must take advice from a suitably qualified financial adviser before such a transfer can be made.
What does suitably qualified mean? Well, pension transfer advice is complex and high risk, and so the adviser should not only be pension-transfer qualified but should also have experience in advising on this area. In addition, individuals seeking this type of advice may want to work with firms that have been providing this type of advice for many years, and who can demonstrate stable and robust systems and processes to support this type of advice.
There are very few advisers of this type in the UK who have confirmed they will offer a DB Pension Review Service, so trustees and employer sponsors need to carefully choose the advice firm they direct members to.
There has been an increase in employers encouraging savers to transfer out of final salary pension schemes following the introduction of the pension reforms, a lawyer has said.