Future consultation planned on £30,000 transfer advice threshold

Pensions Minister, Torsten Bell, has confirmed that the DWP intends to consult on the £30,000 threshold level that currently applies for DB scheme members to seek transfer advice.

Under current law, members of schemes with pensions that include a guarantee are required to take independent financial advice before converting their DB pension to DC, where the value exceeds £30,000. This requirement is intended to ensure individuals are made aware of any existing guarantees that could be lost on transfer to a DC arrangement.

The Government is to assess the potential merits of increasing the £30,000 in line with inflation. A review of the regulations conducted in 2023 identified potential concerns regarding the cost and availability of independent financial advice and the extent of these issues is to be explored. 

The DWP is working closely with the Financial Conduct Authority, the pensions industry, and HM Treasury and intends to consult “in the coming months”.