DB to DC transfers: supporting members

Published by Liam Mayne on

Our expert

  • Liam Mayne

    Liam Mayne

    Partner and Corporate Actuary

  • As our recent research into the current DB to DC pension transfer landscape showed, the market is likely to continue to see a high volume of demand from members over the next few years, but an increasingly limited supply of good quality financial advice.

    Our second research paper in this series looks at the topic from the perspective of the DB scheme members and asks:

    • What are the pitfalls of an unsupported DB transfer process?
    • How can sponsors and trustees provide better support to members?
    • What should sponsors and trustees consider when looking to partner with a financial adviser firm?

    Partnering with a financial adviser firm does of course present its own risks and some schemes may be anxious about doing so. But, for those schemes who see that the advantages outweigh the risks, the benefits for members can be significant.

    Download the report

    Here are the key things you should know: 

    • Without support, it can be difficult for members to understand all their DB pension options, particularly finding a good quality financial adviser to advise on taking a transfer value
    • Following the likely ban on contingent charging and the ensuing upfront cost of advice, it is estimated that demand from individuals for transfer advice will fall by over 50%
    • As a result, the number of firms in the market is expected to fall making it harder for individuals to access financial advice
    • Trustees and sponsors are uniquely positioned to put in place a framework to support members and make accessing financial advice much safer and easier for members.

    Please contact Liam Mayne if you would like to discuss any of the above topics in more detail.