Pensionhelp Direct

Pensionhelp Direct: regulated advice on defined benefit pensions

Pensionhelp Direct is a trading style of Pensionhelp Limited, a firm authorised and regulated by the Financial Conduct Authority and registered in England and Wales. Its activity focuses on advising members of schemes that provide safeguarded benefits, also described as defined benefit or final salary schemes, on whether they should stay in the scheme or transfer out.

The firm states that the starting point for defined benefit advice is that transferring out is unsuitable, and that most people will be better off remaining in their scheme. Its work concentrates on the cases in which individual circumstances might justify reviewing the transfer option.

The advice process and information requirements

Pensionhelp Direct explains that it cannot provide advice until it has sufficient information from the schemes under review and details of the client's circumstances. Once all required information is available, preparing and checking the advice generally takes around three weeks. Because most of the information depends on third parties, the firm does not estimate a total duration for the whole process.

After advice is accepted, the next steps vary. If the recommendation is to take benefits from the existing scheme and the client intends to retire immediately, the scheme pension can generally start within four weeks. If the recommendation is to transfer into a new plan, the process generally takes around eight weeks, although schemes must carry out checks to confirm the transfer is legitimate and the process can take considerably longer.

The firm notes that transfer values are valid only for a certain period and that it does not guarantee meeting transfer value expiry dates. If a new transfer value is required, there is often a charge and the new value could be lower than the expired one. Pensionhelp Direct states that it will only accept clients who confirm they understand this limitation.

Charges and client agreement

Information on charges is set out in the document 'Services and Fees', which gives an overview of the cost of each service. Clients who enter the advice process receive a 'Personalised Charges Document' with a personalised fee, which must be agreed before any costs are incurred. The firm states that no fees are charged until the terms of that document are accepted.

Remaining in a defined benefit scheme

The firm describes a typical final salary or defined benefit scheme as paying a pension linked to earnings and length of employment, rather than to contributions paid or the investments held. It highlights features such as a set monthly income, annual increases usually linked to inflation, the possibility of exchanging part of the pension for a tax-free lump sum, a survivor's pension, a guarantee of payment for a minimum period usually of five years, and a degree of protection from the Pension Protection Fund if a former employer suffers an insolvency event.

Transfer considerations

Pensionhelp Direct explains that obtaining a cash equivalent transfer value and moving it into a personal pension means giving up all rights in the scheme, and that the decision is usually irreversible. It warns that an inflation-linked regular pension can add up over time and that it is easy to underestimate the real value of a regular income. Transferring also exposes the individual to investment markets and new charges.

The firm notes that regulated financial advice is compulsory before a transfer when the transfer value exceeds £30,000. It identifies flexibility as the most common reason people review their defined benefit pension, covering areas such as the timing of benefits, access to lump sums in stages and the ability to vary income according to need.

Regulatory framework and scope

Pensionhelp Limited is authorised and regulated by the Financial Conduct Authority and registered in England and Wales. The guidance and advice on its website are subject to the UK regulatory regime and are therefore restricted to consumers based in the UK. The site also refers to Chartered Status, the Pension Transfer Gold Standard and the Financial Vulnerability Taskforce.