Now we’ve even got a shortage of financial advisers! And thousands are missing out on a richer retirement

pension pots. Savers with smaller pots in particular are likely to find the cost of transferring unjustifiable or unviable, leaving transfers open only to the wealthiest. McQueen worries that faced with few options, some savers may be pushed into the clutches of less professional advisers.

‘Savers may be more exposed to less scrupulous advisers who may not be operating in the best interests of their clients,’ he says. ‘Any market where you have an imbalance between demand and supply is not healthy.’ Steve Webb, who instituted the pension freedom reforms as Pensions Minister and who is now a partner at LCP, adds that some savers may decide not to bother transferring since they can’t get affordable advice – while others may end up paying more.

‘Obviously a big advice fee represents a large slug out of your pension pot, so that’s not a good outcome,’ he says.

‘Savers may also find it hard to find an adviser who offers access to all the pension products on the market. That is not necessarily bad, but it’s often better to use someone who can scan the whole market.’

Michael Shorthouse, 57, a former banker from London, has been trying for a year and a half to transfer one of his pensions.

‘It’s been hard to find an adviser I trust, and it’s a long-winded process,’ he says. ‘I am being charged around £11,000 for advice, and that is the cheapest I’ve been quoted – others were considerably more.’

McQueen warns that the imbalance between supply and demand could grow further still as a number of over-55s made redundant during the pandemic choose to retire early.

WHERE ELSE IS HELP AVAILABLE?

SOME savers will find their employer offers help. Many large firms with a defined benefit pension scheme provide members with access to a reputable transfer advice firm.

The cost of advice is generally around half of what it costs on the general market.

This is because it is often subsidised by employers, and advisers will be fully acquainted with the ins and outs of the pension scheme about which it is offering advice.

‘The adviser already knows every detail down to the inside leg measurement of the pension scheme, so they can offer cheaper, more efficient advice,’ says Webb.

‘But for savers who aren’t offered help from their employer, with every passing year they will have fewer options. There are literally fewer doors you could knock on and fewer firms offering it.’ rachel.rickard@mailonsunday. co.uk