Defined Benefit  

SimplyBiz extends defined benefit pension transfer panel

SimplyBiz extends defined benefit pension transfer panel

SimplyBiz has added a fourth defined benefit (DB) transfer partner, as it tries to reply to the increased demand in this market.

Peterborough-based firm Tuto joins Grove Pension Solutions, Pensionhelp and Creative Wealth Management, as SimplyBiz aims to create a defined benefit transfer panel of firms.

The services of these four firms are available through the firm's SimplyRefer proposition, which offers options to advisers who are either unable to, or choose not to operate in the defined benefit transfer market but still want to meet the needs of their clients.

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SimplyBiz has been in talks with the Tuto for some months.

Gary Kershaw, compliance director of SimplyBiz Group, said the firm was in discussions to add a fourth defined benefit partner back in January.

Mr Kershaw argued that he is comfortable with Tuto's "approach to upholding regulatory requirements, working closely with advisers and thoroughly evaluating the needs and circumstances of each client were in-line" with SimplyBiz.

He said: "The pension transfer panel is one of the most commonly used elements of our SimplyRefer proposition and, with around 25 per cent of the approximate 3,000 calls our pension helpdesk receives every month consistently made up of defined benefit transfer queries.

"I imagine this will remain the case for some time to come.

"It is therefore essential that advisers have access to a broad range of options to help them appropriately handle defined benefit enquiries with an expert, high-level service, even if they have chosen not to advice in that market themselves."

Kim Bascombe, managing director for Tuto, said that the firm's mission is to help clients make informed investment and financial decisions, through "professional relationships based on uncompromising integrity, trust and personalised service".

PensionHelp, another defined benefit transfer partner used by SimplyBiz, announced in January the introduction of a £400,000 minimum case size from 1 February onwards due to "ongoing demand".

Following the introduction of pension freedoms in 2015, defined benefit pension transfers have been soaring, as savers seek to take advantage of sky-high transfer values and to move their nest eggs into defined contribution schemes in order to access their cash.

HM Revenue & Customs data showed more than £14bn has been unlocked from defined contribution pensions since pension freedoms came into effect.

The rush to cash out pension savings is expected to continue, since according to estimates from Hymans Robertson, around one million individuals will transfer out of their DB pension schemes in the next 25 years.