Pension transfer site preps clients for advisers

Pension transfer site preps clients for advisers

Adviser veteran Andy Kirby has created a series of videos to educate clients about pension transfers before they even see a financial adviser.

Called the Final Salary Portal for Advisers, the service is offered by Mr Kirby's financial education firm, Business Moneyalive

It is made up of a series of 17 short videos, each illustrating a particular issue relating to pension transfers, such as what it means to your guarantees if you transfer out, or what it means for taxation if you stay. 

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Demand for pension transfers out of defined benefit schemes into to defined contribution products have soared in the two years since the introduction of pension freedoms rules, which meant DC, but not DB, pension holders could have unfettered access to their entire retirement pot.

However advisers have been wary about advising on DB transfers for fear of facing hefty claims for compensation should clients later regret giving up generous benefits.

Mr Kirby said the aim is for advisers to send their clients a link to the portal, so the client can get educated about the basic facts of staying in the scheme or transferring out.

Each animated video, which includes a case study, prompts the client to click that they have understood the topic, or to ask a question at the end if there was a point of clarification needed by the client.

These questions can then be used by the financial adviser in the eventual client meeting to go through any particular points. 

At the end of the process, the information, confirmation of viewing and questions created by the client are downloaded into a PDF, which the adviser can keep as a compliant record of having provided impartial education and information on pension transfers.

Mr Kirby, who founded adviser hub Adviser Home, an online business development portal for advisers, and is the founder and owner of Mint Wealth Management, said, "there are so many issues around final salary transfers at the moment, so we wanted to give advisers something to support them in the advice process".

"This is not designed to replace the advice process, but to support it. Advisers will end up seeing a client who is better informed, and who has been able to consider some of the issues beforehand."

Mr Kirby added: "When looking at the transfer market it is difficult to get across all the relevant facts in the suitability letter, but by visualising topics, such as what is a critical yield, we can show people what it is all about."

The information contained in each of the individual videos has been created by an accredited trainer, then looked at by the Pensions Management Institute to provide input.