A flurry of activity in the DB pension transfer market has seen record high transfer values. Advisors and investors alike are watching carefully to see if this is a sign of things to come, or if recent concerns over red flags in the market will have an impact on transfers. Defined benefit pension transfer values reached a new high, but they’re still shorter than what was seen last year.
The main reasons for transferring a money purchase or defined contribution pension are as follows:
• Drawdown Options
• Currency
• Investment Selection
Other reasons can include:
• Receiving advice throughout retirement
• Consolidation of all pension ports
Have you previously transferred a UK pension to either a QROPS or SIPP with an offshore adviser and have seen poor performance or are unhappy with the service you are receiving?
The FCA has been cracking down on poor financial advice in the defined benefit transfer market for a few years since the British Steel scam was brought to light. Unfortunately, not all advice is sound.
The Shell Pension Scheme, the non-UK scheme being the Shell Overseas Contributory Pension Fund (aka SOCPF), has consistently been targeted by scammers due to the lack of advice requirements to transfer away. Unlike a UK defined benefit scheme, this scheme does not require FCA regulated advice to transfer away.
If you are a tax resident in France, retired in France or thought about moving to France, you may have asked yourself “What should I do with my UK pension?”. We have just updated our Taxation in France for Expats page with plenty of fresh information as of Jan 2021, to help keep you in the know about tax legislation in France