Cashpoint

New rules are being brought in to protect the growing number of savers who want to cash in final-salary pensions.

Around 80,000 defined-benefit pension transfers took place last year.

The Financial Conduct Authority will force pension advisers to ensure people fully understand the value of the guaranteed income they are giving up when transferring a pension. Advice must give comparisons of the value of benefits a person would lose by cashing in.

People who transfer a final-salary scheme are often attracted by higher tax-free lump sums and greater control over how and when cash can be taken.

Andrew Tulley of Retirement Advantage said: “Many transfer values look very attractive at the moment, often with values above 30 times income. It’s important the regulatory regime doesn’t discourage advisers from helping clients who want to investigate a transfer.”