Rosalind Connor comments in Money Marketing on providing savers with information on transfers
A new paper calling for employees to be given information on how to access transfer values, even if they have not asked for it, has reignited the debate about best practice on defined benefit pension transfers.
Rosalind Connor finds the key point – members “don’t know what they don’t know” so need support on all the options available – a compelling one, as many are unaware of their rights to transfer out, or even that they can obtain a transfer value.
However, she warned there is a flip side to this, as there are a lot of concerns among trustees about members transferring out without proper understanding.
She said: “There is the obvious risk of pension liberation scams, but there is also a risk of members transferring out because it is a good idea at the time, but then regretting it.
“No one can certainly know what their future needs might be and for some members a transfer out will, with hindsight, not have been the most appropriate decision.”
Read Rosalind’s comments in Money Marketing
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