The Government's plans to overhaul pension transfer rules represent a “step forward” for consumers trying to take control of their retirement savings, according to PensionBee, following its consultation on pension transfer regulations.
The proposals will remove the long-standing ‘overseas investments’ amber flag, reduce unnecessary checks on legitimate transfers and introduce new safeguards against pension scams.
The changes also include a new ‘reputable scheme’ test to help determine whether a receiving pension scheme meets the necessary criteria. PensionBee says the inclusion of clear, specific factors in the legislation will be essential to ensure the test is applied consistently and prevent further unnecessary delays for savers.
Lisa Picardo, Chief Business Officer UK at PensionBee, said: “The proposals address some of the key unintended consequences that arose from the initial scams legislation and should help to reduce frustrating unnecessary blockers to legitimate transfers.
“The long-awaited removal of the “overseas investments” amber flag should no longer send consumers into unnecessary MoneyHelper loops, and the introduction of the Small Self-Administered Schemes red flag will provide the requisite protection where needed.
“If done correctly, the introduction of the “reputable scheme” test alongside the inclusion of a non-exhaustive list of factors to assist the assessment of what constitutes reputable, will provide clarity and should allow for consistent application. We would support reference in the legislation that will follow these specific criteria to remove ambiguity and minimise sludge once and for all.
“Overall, the DWP proposals to reform the pension transfer regulations are a step forward in the right direction, and a win for consumers trying to take control over their retirement savings.”
.webp)
%201.png){kind=small}