The Pensions Regulator wants advisers to suggest ways to charge for defined benefit transfer advice on pots that are just over the £30,000 advice threshold.
Speaking at the Investment Association Annual Policy conference, TPR chief executive Lesley Titcomb discussed the need for more cost-effective financial advice, particularly when it comes to DB transfers.
Titcomb says: “We have a particular issue in the occupational pensions world with the requirement of people to take advice on a DB transfer that invoices more than £30,000, yet they are probably being charged between £1,000 to £2,000 minimum for the privilege of paying for that advice, which is a very difficult position to put them in. We are looking to the industry to develop new techniques.”
She adds there is also a need for more advisers due to a lot of the profession approaching retirement.
Titcomb also called on the pensions industry to make sure the pensions dashboard operates in the interest of savers and isn’t “seized by vested interests”.
The Department for Work and Pensions is aiming to launch the pensions dashboard in 2019, allowing savers to see all of the retirement pots from different employers in one place.