Pension transfers may get cheaper
But one New Zealand pension transfer adviser says it would remove a safeguard that is useful to some.
It has been reported that the UK’s department for work and pensions is considering whether it should remove the requirement for people shifting their pensions to consult a British adviser before they move the money into an overseas scheme.
Alun Rees-Williams, of Britannia, said such a service usually cost about £700 at the moment, on top of any fees charged by the New Zealand adviser or the pension scheme provider itself. The cost was high because it had to cover the adviser’s professional indemnity insurance, he said.
He said the requirement had originally been introduced primarily as a way to help people decide whether it was appropriate to move from a defined benefit scheme to a defined contribution scheme.
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