UK - Pearl has dismissed claims that customers are being subjected to huge transfer penalties.
Glasgow-based IFA Indepen-dent Advisers says that Pearl, which is closed to new business, quoted a transfer penalty of £15,800.56 on a with-profits personal pension of £45,613.28.
But a Pearl spokesman said the IFAís claims were based on incorrect calculations.
He explained: “He’s talking about his nominal value, which is the value of the pension at age 60. That is obviously calculated on the basis of the capital put in, working over that period of time.
“He’s looking at a transfer and the customer is a good 12-13 years away from the age of 60, so obviously that capital is not going to work for the whole period of time, so you need to discount back - it is the difference between his nominal value and transfer value.”
The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have outlined plans to better understand the consumer pensions journey as they launch their joint strategy.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.