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£21bn transferred out of DB pensions in 2017

The amount of money transferred out of defined benefit pensions in 2017 more than doubled to £20.8bn.

According to a Freedom of Information Act request filed to the FCA by the Financial Times, in 2016 £7.9bn was transferred out of DB schemes.

According to the FOI, around £5.5bn was transferred out in the fourth quarter of 2017. In the same three-month period the year before £2.5bn was transferred out.

The data show 92,000 DB to defined contribution transfers were reported in 2017 which was a significant increase on the 61,000 in 2016.

Earlier this month, a Freedom of Information Act request published on The Pensions Regulator’s website said DB schemes have reported around 72,700 transfers out during between 1 April 2017 and 31 March 2018. The total value of those transfers was £14.3bn.

However, TPR estimated the actual number of transfers in the 12-month timeframe would be more in the region of 100,000 because not all schemes reporting that transfers took place said exactly how many occurred.

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Comments

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  1. In the short term Revenue, advisers, platforms and fund managers happy, as presumably are those who cashed in their gold plated pensions.

    Fat forward a few years. Strain on the benefits system, Revenue receipts from these pensioners disappear (regular tax inflow from annuities). Advisers in danger of receiving complaints. Platforms and fund managers see reduced FUM.

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