DB transfers reach 100,000 a year

File image of a pension savings potAround 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.

Advisers targeted by ambulance chasers over DB transfers

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.

DB transfers drive FSCS levies up again

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.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Robert Milligan 11th May 2018 at 12:12 pm

    So, let me get this straight, 100,000 clients have transferred their retained benefits “Out”, so, how many more can do so, before the remaining % are covered by the % shortfall in DB funding, so this % can have a % share of nothing in the Pot. I suppose if the PPF collapse’s it could always also fall onto the FSCS levy, I’m off.

  2. Robert Milligan 11th May 2018 at 2:08 pm

    Then, with my “O” level maths 1973, the clients are getting not “True Value,!!! So who is ripping of who!!! Surly the Cost of Benefits should mathematically be self supporting, and can have no baring on the remaining members, Regulatory Obfuscation.

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