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'Dad lost £195k from a bad DB transfer': IFA explains NextGen Planners inspiration

NextGen Planner co-founder Adam Carolan explains how advice to transfer out of a defined benefit pension led his father to lose his pension savings, and why this inspired him to found the NextGen Planners group.

'Dad lost £195k from a bad DB transfer': IFA explains NextGen Planners inspiration

NextGen Planners co-founder and Xentum director Adam Carolan has revealed how poor defined benefit (DB) pension transfer advice received by his father inspired him to form the group that promotes standards and young professionals in financial advice. 

Speaking at the NextGen Planners Conference in Manchester, Carolan (pictured) said his father transferred out of a DB scheme on the basis of advice from a 'trusted adviser'. 

However, the adviser later went into liquidation and Carolan's father's investments did not perform well. As a result he lost nearly £195,500 of his pension savings. 

Of this, just £48,000 could be reclaimed from the Financial Services Compensation Scheme (FSCS). 

'Behind every community like ours is a pain point. I had to sit down in front of my mother, her knowing that I am a financial adviser, and go through all this devastation,' Carolan said. 

Displaying the letter his mother received from the FSCS, Carolan told the 169 delegates why this inspired him to form a group that aims to improve standards in advice. 

‘My late father had built this pot - some trusted adviser, some family friend, had taken it all away from us. I can’t read this because it makes me too angry, but what I can do is shape the future of this profession.

‘All I can do to do that is support you guys. I’ll give my time, my expertise, my support, because I’m passionate that together we can force change.’

Carolan’s added: ‘This slide is in my mind when I advise clients. It’s in my mind when I speak to everyone here in this room, to younger planners. This is the slide that keeps me grounded, it keeps greed from the door.

‘You deal with people’s livelihoods. You deal with years and years and years of people saving up, accumulating wealth, decumulation - we are the first person they come to. Don’t forget that we deal with people’s livelihoods.’

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