The pension changes available to Defined Contribution (DC) members are also having a profound impact on Defined Benefit (DB) schemes and their members.
The more generous death benefits DC members now enjoy and the flexibility to withdraw money as and when needed has caused an increase in the number of members who want to transfer their DB scheme into something more accessible.
The continuing low interest rate environment and pressures on gilt yields have affected the stability and sustainability of DB schemes and lead to soaring transfer values, making it a seemingly more attractive proposition for members to transfer away, or for employers to seek to manage liabilities through transfer exercises and pension modifications.
For members, making the right decisions about a DB transfer usually means they need regulated financial advice. In cases where advice is not a requirement the member risks falling victim to the growing number of pension scams seeking an easy pay day.
For liability exercises it is usual for the employer or scheme to have to make regulated advice available for members so they can make decisions that are in their best interests.
We can help by providing members and employers with the knowledge they need about pension transfers including the various advantages and disadvantages.
With a dedicated pension transfer specialist and a wealth of experience in the workplace our guidance and regulated advice service will help to mitigate the risks you and your members face.
For more information, please contact us.