OpinionAug 6 2018

Financial advice and the contingent charging predicament

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Financial advice and the contingent charging predicament

Some in the industry believe a ban on contingent charging could make it harder for people with small to medium transfer values to access advice.

It is possible that low-cost advice options could be found in new technological advancements, which have led to a rise in automated advice and other digital tools.

As DB to DC transfers will likely continue to remain popular, we urge the new Single Financial Guidance Body to develop further guidance on this issue for those with small to medium transfer values.

This could also be an opportune time for the Pensions Advice Allowance to be revisited, to help create greater access to affordable financial advice.

This consultation is an important step forward in helping people achieve the right outcomes in retirement.

This is an area where consumers are at risk of losing valuable benefits that have not been properly explained to them and intervention is necessary to ensure the right safeguards are in place.

We want the regulator to continue to work on ensuring consumers understand what they would be giving up; that their retirement income will need to meet their needs in later life, as well as ensuring that people are protected from scams, and that the advice they receive is fit for purpose.

Tiffany Tsang is policy lead, LGPS and DB at the Pensions and Lifetime Savings Association