UK. Pension firms issue warning to savers over transfers
To prevent people from losing out, anyone who wants to shift their money will now get a letter from their scheme stating that a transfer is unlikely to be in their best long-term interests.
Pension scheme trustees will warn savers of the risks during the pandemic and urge them to consider the decision carefully.
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The warning letter will be signed by watchdog The Pensions Regulator (TPR) , the Financial Conduct Authority (FCA), and the Money and Pensions Service, which runs The Pensions Advisory Service.
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Why transferring a final-salary pension could lose you thousands of pounds Final salary pension schemes, also known as defined benefit schemes, give members a guaranteed income until they die.
If someone wants to move their money to a different scheme – they are offered something called an equivalent cash lump sum called a CETV – cash equivalent transfer value.
Sometimes the pension scheme will even offer incentives to transfer, which means you could get more than your pension is worth on paper. Often, this is a huge amount of money.
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