New pension transfer rules to change advice conversations - research

From LCP and Royal London

Julian Marr
clock • 3 min read

New FCA rules on pension transfer advice will bring about a significant change in the conversations between scheme members and their advisers, according to a joint policy paper from LCP and Royal London.

Since 1 October 2018, financial advisers have had to show their clients how the transfer value they have been offered by their company pension scheme compares with a ‘transfer value comparator' (TVC) - an estimate of the lump sum needed today to buy an equivalent pension at retirement to the one being given up. The two figures will be shown in the form of a bar chart, with the TVC figure almost always being the higher of the two. A key finding of the paper, What will the FCA's new rules mean for DB to DC pension transfers?, is that, for members 10 years away from retirement, the transfer...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

How advisers can play a role in boosting wellbeing in retirement

How advisers can play a role in boosting wellbeing in retirement

A happy retirement is the 'north star'

Cecilia Furner
clock 08 November 2024 • 3 min read
Partner Insight: Embracing the future of retirement planning

Partner Insight: Embracing the future of retirement planning

Brooks Macdonald
clock 31 October 2024 • 2 min read
Pension tax rules uncertainty shows 'need to shift retirement planning'

Pension tax rules uncertainty shows 'need to shift retirement planning'

Needs to include wider considerations of capital drawdown beyond pensions

Isabel Baxter
clock 24 October 2024 • 2 min read