The Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) have produced a factsheet for savers who have a defined benefit (DB) pension.
The plain English factsheet, published today (Friday 5 June):
Charles Counsell, chief executive of TPR, said: “Leaving a defined benefit (DB) pension is one of the most significant financial decisions savers can make and so our joint factsheet is a really important tool to alert them to what they may lose if they take this step. It also explains the key things to consider before seeking advice on a DB transfer.
“For most, switching from a DB scheme is unlikely to be in their best long-term interests. They may lose a guaranteed retirement income and pension protection if an employer goes bust.
“Savers should not rush their decision and should seek FCA-regulated advice first before making a move that can’t be reversed. People with a transfer value of over £30,000 must by law get advice before moving their money.”
A copy of the factsheet can be found here.
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