80,000 transfers out of DB schemes in the last year

Around 80,000 transfers out of defined benefit pension schemes were made in the last year, a regulator has estimated. The Pensions Regulator has released information on DB transfers, following a freedom of information request.It stated: “For the period of 1 April 2016 to 31 March 2017 defined benefit pension schemes have, in total, reported 67,700 transfers out of the scheme.“However, not all of these schemes have reported how many transfers they carried out. Our estimate is that there were around 80,000 transfers made. We do not hold this information for previous year.”The release comes about a month after an actuarial firm revealed the number of DB transfers completed in the first three months of 2017 increased 166%. The rise, which was based on comparisons with the same three-month period of 2016, was reported by Xafinity Group.The data, collected on a monthly basis, was taken from a sample of the pension schemes that Xafinity were involved in. As well as looking at the number of transfers completed analysts also looked at the number of requests for transfer value quotations, which, over the same three month period, has increased by 70%.This week a FundsNetwork report was published. This found that a majority of advisers see defined benefit transfers as forming a greater part of their business in future – despite regulatory risks being ‘high’. It said that demand was no “flash in the pan”.Nearly three quarters of the 222 advisers surveyed believed offering DB transfer advice had potential to grow their business but fears around retrospective legislation have lingered.Some 70% stated that, with valuations rising and more people with DB schemes reaching retirement, this area could form a greater part of advisory businesses in the future.However, of this group, 64% were worried about retrospective legislation and how this could impact on them in the future.Former FCA technical specialist Rory Percival has said an event on Defined Benefit pension transfers “couldn't be more important” for advisers.Mr Percival will speak on the subject, alongside ex-Pensions Minister Steve Webb, Abraham Okusanya, the founder of retirement research firm FinalytiQ and Henry Tapper, founder of Pensions PlayPen, in June.The Defined Benefit pension transfer discussion day has been organised by adviser Al Rush, who runs Echelon Wealthcare and set up robo-adviser Fiver A Day.

80,000 transfers out of DB schemes in the last year

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