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DB transfer numbers up 587% since 2016

The number of people moving from defined benefit to defined contribution pension schemes has gone up by 587 per cent, according to FCA figures.

In the six months to March 2016 5,056 people transferred their pension. In the six months to March this year the figure was 34,738.

Over the same period in 2017 the number of people transferring was 13,024, a 157.6 per cent increase on the previous year.

The annual increase between the 12 months to September 2016 and the same period the following year was 228.4 per cent.

The FCA published the data in response to a freedom of information request and says it was gathered from the Retirement Income Data Request, which is collected from a sample of 54 firms. It includes their contract and trust-based assets.

Not all pension transfers are covered by the data. The FCA states when the survey was started in 2015 it covered around 95% of defined contribution contract-based pension scheme assets.

Trust-based occupational pension schemes or defined benefit schemes, which make up the majority of assets in the workplace pensions savings market, are not included in the survey, the regulator says.

It warns an apparently steep rise in pension transfers may, in part, be due to the fact more firms are providing DB to DC data.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. It will be very interesting to see how far these figures fall by the end of 2018. PI issues, FCA new rules, new suitability requitements and uncertainty will have resulted in these figures falling substantially I think.

  2. Oh! HMRC loves it. Advisers love it, fund managers love it and the platforms are ecstatic. I wonder how the clients will feel in 4 or 5 years? (Or perhaps even sooner)

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