Pension switching

Advisers are dammed if they do and dammed if they dont. What happens in 10 years time when a client goes to retire and the result is not as good as if he had transferred. Who,s going to pay the compensation when the FSA decided it was not a good idea. Not the FSA I bet.

Posted by: terry

Don't Mention the Pension

Pensions have never been more flexible and there has never been a time when a pension as a 'product', for very many people, is only one of many sources of of income in retirmeent (ISAs, bonds and property rental are just three other sources)but never has there been a time when the controls on advice have been so onerous. I can well believe IFAs are nervous about doing anything. Not only are compliance regualtions so detailed as to become self defeating but the process of giving advice is now as time consuming. Advising on the potential of switching pensions really has become like the Forth Bridge of financial services. By the time you have finished the process you need to start again as the work at outset has become out of date. Never has there been a time when "common sense and common decency" has been treated with such contempt from those with an axe to grind and a salary to justify.

Posted by: Jefroc

The process doesn't work

The problem is that 1 in 6 pension transfers appear to be poor advice and it looks like there are IFA's out there that bend their advice for the commission. One such 'transfer specialist' in Gateshead has recently been banned by the FSA and more than a half of their transfers were unfounded. So hurray the FSA then? Unfortunately, any talk of an FSA investigation brings up fears of a compensation freeby for cients, which is heavily bent in favour of whatever lies their Claims Management firms can come up with. The result is that Pension Transfers becomes the new leprosy and PI insurers and legitimate advisers try to avoid them. Hence leaving the public's pension hope in the hands of bankrupt with-profits funds of closed for business, pension providers of the past. I think the FSA needs to learn to be a bit more subtle.

Posted by: Mark Green

Pension Switching

I sincerly hope Mike Jones, of consumer site MyCompanyPension.co.uk, has been mis quoted when hes says "churning is still a very real threat to clients today" and is further quoted as saying "A recent case I mediated on involved an IFA who transferred £50,000 from one pension provider to another for a 63-year-old who was two years away from drawing his pension". "The policyholder was at his wits end when, 18 months later, he only had £26,000, such was the downturn in this particular fund." With respect Mike, that seems to me to be a fund selection issue which is very distinct from a legitimate pension Transfer or quote "Churn".

Posted by: Alan Parkinson

Pension Switching

I sincerly hope Mike Jones, of consumer site MyCompanyPension.co.uk, has been mis quoted when hes says "churning is still a very real threat to clients today" and is further quoted as saying "A recent case I mediated on involved an IFA who transferred £50,000 from one pension provider to another for a 63-year-old who was two years away from drawing his pension". "The policyholder was at his wits end when, 18 months later, he only had £26,000, such was the downturn in this particular fund." With respect Mike, that seems to me to be a fund selection issue which is very distinct from a legitimate pension Transfer or quote "Churn".

Posted by: Alan Parkinson

Good article

But we have a problem as Alan says there is a gap of knowledge moving on to platform and into a wrap is not the same as investing. Investing is a separate issue it is this that causes the most problems and needs the most work discussion and agreement.

Posted by: John whipple