Nearly three-quarters of Money Marketing readers believe that defined benefit pension schemes should have to offer partial transfers.
While current rules allow individuals to take part of their final salary pots, many trustees and employers are reluctant to offer partial transfers over fears of administrative difficulties, even though they can reduce their DB scheme’s liabilities and give more flexibility to members.
Anecdotal evidence suggests that few providers are currently offering partial transfers. Key pensions industry figures such as former pensions minister Steve Webb, Fidelity head of pensions policy Richard Parkin, Hargreaves Lansdown head of retirement policy Tom McPhail and providers including Aegon have all come out in support of partial transfers.
Most recently, Standard Life argued that new rules should be introduced to make sure advisers take into account partial transfers when making their recommendations on DB transfers.
In a poll of 141 Money Marketing readers, 73 per cent agreed that DB schemes should have to offer partial transfers. 24 per cent said they should not be forced to allow consumers to give up part of their guaranteed incoming, and the remaining three per cent were undecided.
Pensions technology provider Origo says that conversations around partial transfers are one of the factors that are likely to fuel further DB transfers into the future.