Defined Contribution  

DB transfer portal adds decumulation content

DB transfer portal adds decumulation content

Money Alive, which launched a portal with pension transfer educational videos last year, is now adding decumulation content, to educate adviser clients on drawdown and annuities.

Ian Beestin, one of the founding directors of the company, told FTAdviser the videos could be used by advisers ahead of meetings with clients to make the process more efficient.

He said: "The adviser will be talking to a more informed client, which can speed up the conversation.

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"Post-RDR it is quite expensive for an adviser to sit down with a client and educate them, so this is a way of outsourcing that to an impartial provider. We know this type of approach is valued by clients."

Money Alive said the new content – nine videos on drawdown topics and eight on annuities – had been included in the portal in light of the Financial Conduct Authority's recent Retirement Outcomes Review, and demand from advisers wishing to use the video approach in other areas of their business.

As part of this review, the FCA found many consumers were solely focused on taking tax-free cash from their pensions and were "insufficiently engaged" with the decision around how to invest the remaining funds that moved into drawdown.

The new content is being added today (February 26) and will be free of charge for existing clients, Mr Beestin said.

Similar to the final salary portal videos, the decumulation content was written by experts and accredited by the Pensions Management Institute, Money Alive stated.

At the end of each video, clients are asked to confirm they have watched it, understood it, and if not, they have the opportunity to ask questions which are shared in real time with the adviser’s dashboard.

It was suggested in November that the pension transfer content - made up of a series of 17 short videos, each illustrating a particular issue relating to DB transfers – could help advisers get better conditions from professional indemnity insurers.

Craig Harrison, managing director of Creative Wealth Management, said: "The FCA was clear in their defined benefit policy statement last year on where the advice boundary sits.

"This isn’t just applicable to defined benefit advice and applies to all types of regulated advice.

"As such, an education piece such as the type that Money Alive have put together can save an adviser time in educating a client and also acts as clear evidence of the process undertaken."

maria.espadinha@ft.com