Thousands of UK savers advised to give up final-salary pensions
Tens of thousands of savers were recommended to give up valuable final-salary pensions by advisers using a popular charging model now banned owing to concerns it was fuelling mis-selling, according to data published by the regulator.
Last October advisers were barred from providing defined benefit pension transfer advice using the contingent fee model, where they were only paid if the client decided to go ahead with a transfer recommendation.
The Financial Conduct Authority acted after becoming concerned the contingent fee model was incentivising advisers to persuade their clients to transfer, a move the FCA did not regard to be in the best interests of most people.
The FCA on Monday published data showing that over an 18-month period until March 2020, 39,414 consumers were recommended to give up their guaranteed defined benefit pensions and transfer their funds to a riskier pension arrangement, by advisers working on a contingent charging basis.
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