The introduction of pension freedoms paired with increasing transfer values has led to a marked increase in demand for advice on DB pension transfers. This section aims to help you meet this demand from your clients whilst minimising the risks around offering transfer advice.
There's no denying demand for advice on DB pension transfers is still soaring. The FCA adviser survey in April 2016 showed client demand is up 123% and enquiries from potential new clients have increased by a staggering 246%. This has translated into transfer activity, with the Pensions Regulator estimating that 80,000 DB transfers took place during 2016/17.
It's a trend you can't ignore. Taking on new DB clients is optional. Helping existing clients with DB pensions decide what's right for them isn’t. But are you ready to manage this demand and have these conversations?
Implementing an effective pre-advice triage process within your business could be the key to managing capacity and getting to the right clients efficiently. Such a process could help you quickly identify whether a transfer to DC is likely to merit serious consideration before committing to giving advice. And from the (potential) client’s perspective, it could help them better understand the implications of moving from the safe DB environment before deciding whether to incur the time and expense of professional advice.
Keeping up to date with developments in the DB transfer advice environment helps enhance your client proposition. We've developed a package of support materials to help you with your client conversations:
John Atherton discusses the direction of travel around the regulation of DB transfer advice and provides some tips on how to meet the regulator’s expectations.
For more information on how we can help support you and your business with DB pension transfer advice, you can:
Contact your Account Manager
Call us on 0345 272 6622 (option 2)
Visit our DB to DC page Adviserzone (login required)
You can also read our technical team’s insight articles:
Our technical team ran a series of CPD accredited seminars throughout 2017, designed to help advisers understand how to mitigate the risks of advising on DB pension transfers whilst supporting this demand for advice.
These events were attended by hundreds of advisers and have been highly recommended by the advisers that attended.
'The best and most useful course I can ever remember attending'
'Focussed on making us aware of the issues that we needed to give consideration to rather than just telling us lots of facts'
'Having been to several similar events recently, this was by far the best'
'I appreciated the fact that you were not trying to push your own products'
Although there are no further events scheduled this year, look out for future events happening near you.
Andrew Dines, Financial Planner at AAB Wealth in Aberdeen, discusses the firm's holistic approach to DB transfers, the importance of ongoing advice and their view on outsourcing.
For more information on how we can help support you and your business with DB pension transfer advice, please contact your Account Manager, otherwise, contact us on 0345 272 6622, (Option 2) or email firstname.lastname@example.org.