Following from my recent post and para-post on LinkedIN, Henry Tapper posted a question for me here:

Here’s my answer (linkedIN wouldn’t let me post it):

”Henry, now now…check the financial advice given by a regulated pension transfer specialist authorised to give advice on DB transfers and given permissions by FCA?

Trustees to check that? No.
That is definitely not the job of a trustee; they have their own specific responsibilities and duty of care to members.

DB transfer advices need specific permissions and I very, very strongly support that continuing. Training and mentoring these guys is a key part of my current role.

Transitioning to a truly professional approach to analytical unbiased DB transfer advice is something I am passionate about and that fits squarely in the adviser community.

I like the idea of us all having a choice in deciding whether we prefer more umbrellas, more ice-cream or both.

I haven’t met anyone from any social demographic who doesn’t understand that when they take their money out of their bank account and spend it on a bottle of wine, when the wine is drunk…the money doesn’t re-appear in their bank.

Is it any different in pensions world?

One example from this week:
DB scheme member, 40% HRT and with £200k in SIPP.

Wants to take £200k from SIPP in April.

He wants to spend it on his £500k mortgage.

He understands the tax implications, reduces his debt, increases his disposable and everyone is a winner….

Does it matter the money comes from the DB scheme or the SIPP?