IFA Newsletter June 2023

FT Adviser have recently published an article written by our own Managing Director Tim Flippance with the self-explanatory title “Factors to consider when clients are considering a DB transfer”. Read this article and claim 30 minutes CPD

We would anticipate this being the first in a series of CPD articles, so if you would like to be updated automatically, please subscribe to the FT Adviser CPD newsletter.

We wrote in the previous newsletter (February 2023) about the significant falls in transfer values, linked to the sudden and large increase in interest rates / gilt yields, around spring / summer last year. However, since then we have seen a small increase in average transfer values, and this trend has continued with the XPS Transfer Value Tracker index showing a 4% increase in the last month.

As detailed in the previous newsletter, unless interest rates and gilt yields fall significantly (which appears very unlikely), the chances of transfer values getting back to their peak of late 2021 remain remote.

Ultimately, advice should always be an individual consideration, and outcome of Full Advice should be based on the importance of a client’s objectives compared to the relative generosity of the transfer value. Due to our balance approach, and despite the general falls in transfer values since summer 2022, interestingly we’ve only seen a small drop in positive recommendations to transfer:

Of course, it is important to note that where our Advice is Negative, we will consider an insistent client request and although it is always judged case-by-case, the majority of these are accepted.

If you would like more information about this please go to DB Pension Transfer Insistent Clients.

Our seminars are designed to give you a greater understanding of our processes and offer a real insight into both Abridge Advice and Full Advice and how our PTS come to conclusions on both of these. We avoid the usual ‘lecture presentation’ style of similar events by encouraging questions throughout and with 2-3 of our senior PTS attending, these are very interactive sessions. Feedback from IFA’s has been extremely positive with many commenting that the knowledge gained has helped them identify potential DB transfer referrals – increasing FUM, whilst also helping them manage their clients throughout the process.

We are in London on 29th June hosted by Prudential, Newport (Holiday Inn) on Friday 7th July and back at New Grove House on Friday 14th July.

If you would like to attend any of our seminars or have any questions, just e-mail seminars@groveps.co.uk.

Following the re-launch of our website earlier this year, we have recently made some enhancements to the scheme library.

Around 50 of the biggest DB schemes are included so far and each scheme page includes useful information about the standard scheme benefits, funding position, retirement age and even average transfer timescales.