Most pension transfer specialists are clueless about the changes happening to pension transfer advice in October, which has caused many to worry the sector may not be fully ready to implement the regulator-imposed changes.
According to a survey of 90 pension transfer specialists by adviser platform Quilter, over half (56%) failed to identify that a new generic comparison was being introduced.
Under the new rules, which come into force next month, financial advisers will have to provide their clients with a value of how much the benefits in their defined benefit (DB) scheme would cost today in the open market, which is the Transfer Value Comparator (TVC).
More than half of respondents were unable to identify what assumptions will be used to generate a TVC, with almost one third freely admitting that they do not know what assumptions will be used.
Ian Browne, pensions expert at Quilter, said pension transfer specialists “need to act urgently” in the time they had left before the changes are implemented to get up to speed.
“Any adviser thinking they can just put one of the new transfer value analysis reports on the client file and continue as before are in for a shock.”
Pension transfers fall to £8.2bn in Q2
The total value of pension transfers fell from £10.6bn in the first quarter of the year to £8.2bn in the second quarter, the latest figures from the Office for National Statistics show.
According to AJ Bell, this is the first drop in value of pension transfers since the second quarter of 2016.