Back in 2018 the Financial Conduct Authority (FCA) reported that advice was suitable in fewer than 50% of pension transfer cases – a figure that fell significantly short of the 90% mark recorded in other areas of the consumer financial advice sector.*
Pension Transfer Advice Still Lacking
As a result of the 2018 findings the FCA carried out analysis of a significant amount of data to help it comprehend the defined benefit pension transfer advice market more clearly.
The FCA has now published details of pensions advice carried out by 3,015 advisory firms between April 2015 and September 2018 on pensions worth a total of £82.8 billion, with an average of individual pension value of £352,303. Interestingly, the watchdog found that 162,047 individuals – accounting for nearly 70% of clients – were advised to transfer out.*
Curiously this figure includes not only UK expat retirement transfers, but also those that relate to UK residents, a demographic that may be less likely to benefit from a transfer into a QROPS or a SIPP.
“We have said repeatedly that, when advising on DB transfers, advisers should start from the position that a transfer is not suitable,” commented Megan Butler, the executive director of supervision, wholesale and specialists at the FCA.*
Butler added that it is deeply concerning and disappointing to see that transfers are still being recommended at similar levels.
Reliable advice for one of life’s most important financial decisions
Choosing whether to undertake an expat retirement transfer is one of the most important, yet complex, financial decisions you will ever have to make. As such, it is essential that you receive reliable, regulated and impartial advice which takes full account of your cashflow needs, retirement goals, time horizon and cross-border situation.
Blacktower Financial Management provides clients with world class and independent financial advice, to help them determine whether an expat retirement transfer really is in their best interests.
We always work with our clients’ best interests in mind and are committed to providing a transparent, professional and attentive service, whatever your financial advice requirements.
For more information about how we may be able to help you achieve your retirement goals, contact your local Blacktower Financial Management office today.
* https://www.fca.org.uk/publications/multi-firm-reviews/defined-benefit-pension-transfers
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
In recent years Portugal has become a very attractive prospect for anyone looking to move to sunnier climes. A number of initiatives by the Portuguese government have made it easier for non-European citizens to apply for special visas, which allow them to both live and work in the country. The most famous of these is the so-called Golden Visa, which permits people to become resident based on their making a significant investment in the country, purchasing property, or setting up a business. Whatever your reason for wanting to move, and there are many, getting a mortgage in Portugal is going to be high on your agenda.
Despite the protestations of expats in the Netherlands, expat financial advisers and business leaders, the Dutch cabinet recently announced that it would proceed with plans to reduce the favourable 30% expat ruling from eight to five years.