Closed petition Remove mandatory financial advice clause for Defined Benefit Pension transfers.

Closed on 13 September 2020

DB pension holders wishing to take a cash equivalent sum must take “appropriate independent advice” if the value of benefits exceeds £30,000, typically costing 3%-5% of the transfer value, equating to up to 2 years of pension contributions.

This disproportionate cost to gain access to one’s own pension feels like a legalised scam.

There is no guarantee that the advice will prevent scams as the advice need not be followed. It would be straight forward for trustees to provide prescribed information as to the value of the transfer, market comparisons and the risks associated with forfeiting benefits and investing in non-regulated financial products.

Transferrers can always request additional advice, but it should not be mandatory to obtain this ballooning disproportionate advice the majority of which is simply not needed.