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Final salary pensioners left adrift by new law

Retirees left adrift by looming pensions advice gap

Final salary pensioners face a shrinking pool of professionals willing to give vital financial advice.

Laura Miller (interactive investor, 7/09/2020) writes about the possible repercussions from a new law taking effect 1st  October where financial advisers will no longer be able to offer clients the option to pay only if they go ahead with a recommended pension transfer.

“Savers seeking final salary pension advice risk running into the arms of fraudsters, experts warn, because up to half of professional financial advisers are pulling out of the market. Defined benefit (DB) transfers allow over-55s access to a lump sum rather than an income from their final salary pension, but only after getting regulated financial advice, if a pension is worth more than £30,000. Pension transfers have become increasingly controversial, as financial watchdogs have warned that too many people get unsuitable advice to transfer, and have tightened the rules for advisers who provide the service.”

 

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