Anna Rogers comments in New Model Adviser re DB dangers: how to avoid pension transfer trouble
Anna comments in the New Model Advisor on the dangers of DB schemes saying there is a new mis-selling scandal brewing, mainly driven by scheme members.
Anna said “employers don’t need to offer a cash incentive to transfer out. The pension freedoms mean members are effectively bribed with their own money,”
“People want to bribe their IFA. That’s what I have heard from people at insurance companies and IFAs themselves: that the client, instead of paying £1,500 for a full fact find, [offers] the IFA £100-£200 to just sign it off,’ says Rogers. ‘Of course, none of the IFAs I spoke to had done that.”
On transfer best practice Anna said “some employers will fund advice even for transfers below £30,000 because it is good risk management, but they will say the member has to use their adviser.”
“They will have a streamlined process, be cost effective and can be sure the IFA understands all its systems and procedures.”
Read the original article in New model Adviser here.
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