DB to DC transfers double following pension reforms

The data also shows that advisers have been reviewing requests from clients in an older demographic in the same period compared to last year. In 2014, 59% of DB reviews were for those over 50, which has risen to 77% in 2015, suggesting an increase in people approaching retirement exploring their options and potentially transferring out of their DB schemes. The increase in activity shows that people approaching retirement are actively reviewing their pension pots, as they look to explore their options.

Selectapension’s data also analysed adviser behaviour when selecting the most suitable plans for a potential transfer.

The data from Selectapension's DB Transfer Analysis tool found that the top providers selected by advisers for a potential transfer from a DB scheme were Royal London, Scottish Widows, Prudential, and LV.

Andy McCabe, Managing Director, Selectapension, commented:

“Pension freedoms have started to make a considerable impact on consumers and have acted as a catalyst for many to reassess whether remaining in a DB scheme is the best option. However, it is important to recognise that transferring from a DB scheme is not suitable for everyone and a decision as complex as this should not be made hastily but with comprehensive financial advice.

“Assessing how appropriate a transfer is can be a complicated undertaking. At Selectapension, our Defined Benefit Transfer Analysis tool allows advisers to research and compare the most suitable plans for their clients, all in a detailed report which is automatically stored for future reviews.”