IFA Newsletter July 2025

The number of IFAs authorised to offer defined benefit (DB) pension transfer advice continues to fall, according to the latest data obtained by Grove via a Freedom of Information request.

As of June 2025, just 917 firms remain active in the space—down from 978 in May 2024, marking a 7% year-on-year decline.
This drop is part of a longer-term trend. A decade ago, in 2015, 2,854 firms were advising on DB transfers. That’s a significant 68% fall over the past 10 years. Defined benefit advice: advisers drop permissions as transfer demand wanes – FTAdviser.

With increasing regulatory scrutiny and rising PI costs, many advisers have exited the DB transfer market – leaving consumers with fewer options.

With the majority of defined benefit (DB) pension schemes now in surplus, the Government’s forthcoming Pension Schemes Bill aims to loosen restrictions on how these excess funds can be used.

According to GOV.UK, record levels of scheme funding could unlock as much as £160 billion—capital the Government hopes will be redirected toward business investment, wage growth, and wider economic recovery. Record pension scheme funding means up to £160 billion ready to boost growth – GOV.UK

Another option already permitted would be for schemes to offer enhanced Cash Equivalent Transfer Values (CETVs) as part of a broader de-risking strategy. However, despite the potential long-term benefits, this option is unlikely to gain traction among most schemes.

The key factors of member protection, sponsor flexibility, and economic ambition will need to be balanced as the legislation progresses.

Brewin Dolphin have launched a range of seven portfolios across a range of investment objectives and risk profiles, available through the Scottish Widows platform. This approach offers both significant investment diversity, as well as both active and passive elements to each fund.

This simplified approach is ideal for the near-or-at retirement market, particularly for clients looking for a highly diversified, but cost-conscious investment strategy, to replace the ‘guaranteed’ income of their former DB scheme.

Further details about the new funds can be found here, and likewise for the Scottish Widows Investment Platform for Advisers.

The Grove Pensions Solutions (GPS) CETV Index provides an average CETV based on a £10,000 per year pension.  This is calculated by analysing the actual CETV and benefit value of thousands of ‘real-world’ CETV’s calculated since January 2024.  This is unlike other indexes that use a ‘typical’ CETV based on assumptions.