£30K threshold for Financial Adviser requirement

Mark_Somerset

Please can someone clarify whether the £30K threshold above which you are legally required to seek regulated financial advice if accessing a pension is based on the market value of the fund or "value of any guaranteed annuity rate"?
And does this legal requirement for regulated advice also apply to moving a pension (e.g. from Prudential to Vanguard)?
Many thanks

MallyGirl

This £30k threshold relates to:

1. defined benefit (final salary) pensions with a CETV (transfer) value > £30k or 
2. to pensions with a pot of money > £30k but with defined benefits/protected features.

Marcon

Mark_Somerset said:

Please can someone clarify whether the £30K threshold above which you are legally required to seek regulated financial advice if accessing a pension is based on the market value of the fund or "value of any guaranteed annuity rate"?
And does this legal requirement for regulated advice also apply to moving a pension (e.g. from Prudential to Vanguard)?
Many thanks

You are  not 'legally required' to seek regulated advice before accessing a pension. The provider is required to give you a strong nudge to take advice or just guidance if you have a defined contribution pension, but that can be from somewhere like PensionWise (free guidance - they don't give advice), and you can decline to do so.

The requirement to take regulated advice applies to transferring a pension which has 'safeguarded benefits' (usually some sort of guarantee) with a current transfer value of at least £30,000 where you are transferring to a scheme which enables you to 'flexibly access' your fund.

Mark_Somerset

Thank you. Very helpful answers. 🙏🏻