Targeted support leaves gap in pension transfer clarity, warns Scottish Widows

Responding to the FCA’s new Targeted Support proposals, Pete Glancy, head of policy at Scottish Widows, says savers still lack a simple way to compare pension pots when deciding whether to transfer or consolidate. With people typically accumulating multiple workplace pensions over several employments, Pete stresses that clear comparisons of charges, investment returns and guarantees are essential.

Pete Glancy, head of policy, Scottish Widows: “It will become typical for people to start accumulating assets through a workplace pension, then consolidate multiple pots after several employments, and for those who become wealthy to eventually move assets onto an Adviser Platform for professional advice.

While the FCA has been developing a ‘Value for Money’ framework for workplace products and schemes, there’s been nothing to help savers make similar comparisons before moving their pension pot. Charges, investment returns, and guarantees are all important, and a simple way to compare these is needed for informed choices.

There are no changes to the approach taken by professional advisers when recommending pension transfers or consolidation.”