Defined Benefit  

Tideway launches DB transfer tutorials

Tideway launches DB transfer tutorials

Tideway has launched a series of tutorials on defined benefit transfers on its website to educate consumers.

The eight 10-15 minute online tutorials are available free of charge and cover topics such as transfer values and their fluctuations, the impact of taking a tax-free cash lump sum on a pension, and the risks associated with income drawdown.

James Baxter, managing partner at Tideway, said: "Getting the most from your pensions assets has to start with education.

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"DB transfers are a complex issue where generalisations are extremely dangerous."

The tutorials are designed to offer guidance and shouldn’t be construed as advice, Tideway stressed.

Tideway has in the past been accused of factory gating at its seminars, which the firm denied.

FTAdviser reported earlier this month that the take up rate of DB transfers remained steady at 30 per cent in the year to June 2018, despite the number of people requesting a quote declining, according to data from consultancy firm LCP.

Last May, the Financial Conduct Authority disclosed that the value of money transferred from DB to defined contribution schemes had leapt to £20.8bn in 2017 from £7.9bn in 2016.

However, new rules for advice in this sector introduced by the FCA in October – such as the introduction of a transfer value comparator - are expected to prevent more savers from cashing in their pensions.

DB transfers worth more than £30,000 require financial advice to be processed.