Around 100,000 people transferred out of their defined benefit pension between 1 April 2017 and 31 March 2018, according to data from The Pensions Regulator.
A Freedom of Information Act request published on TPR’s website says DB schemes have reported around 72,700 transfers out during that period. The total value of those transfers was £14.3bn.
However, TPR estimates 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.
TPR’s response says: “Not all schemes have reported on scheme transfers; though it is a requirement for a scheme to submit a completed scheme return, it is not a requirement to provide the number of transfers and therefore all supplied figures are indicative only.”
The data reported for 1 April 2017 to 31 March 2018 is based on scheme submissions as of 16 April 2018.
A separate FOIA request to TPR reveals an estimated 80,000 transfers out of DB schemes between 1 April 2016 and 31 March 2017.
TPR says that not all transfers were to defined contribution schemes, but the FCA has frequently expressed concerns over the significant number of DB transfers that are ending up in higher-risk Sipp investments.