Pensions - Articles - DB to DC transfer activity reduces say actuaries at Xafinity


Research from Xafinity shows that, after a significant spike in March 2015, the number of members requesting transfer value quotations in respect of their Defined Benefit / Final Salary benefits has started to reduce.

 In the first three months of 2015 Xafinity observed a 60% increase in the number of members requesting transfer value quotations from Defined Benefit / Final Salary pension schemes. Since March 2015, however, the number of transfer value quotations being requested has started to tail off such that in May 2015 activity was just 15-20% higher than in January 2015.

 Paul Darlow, Head of Proposition Development at Xafinity comments: “These figures suggest that, as April approached, there was significant pent-up demand from members who were considering transferring their pension benefits into the Defined Contribution environment in order to access the new flexibilities. Whilst the number of transfer value quotation requests has since begun tailing off, activity remains above that observed in January 2015. However, these overall figures mask some very significant variations between individual pension schemes – some pension schemes continue to experience activity levels consistent with (or even greater than) that seen in March 2015. As the payment of significant amounts of transfers can have a material impact on pension schemes, it remains important for Trustees to consider the actions suggested by The Pensions Regulator in its recent Guidance to ensure that their pension schemes are protected.”
  

Back to Index


Similar News to this Story

The state pension remains a critical income source
Average annual retiree spending is £22,140 per year – nearly £10,000 below the recommended Pensions UK level for an adequate lifestyle in retirement.
What the Pensions Commission should consider and why
In July the government revived the Pensions Commission, to address the UK’s retirement crisis that risks tomorrow’s pensioners being poorer than today
Survey finds slowdown in discretionary pension increases
Aon has found that fewer UK defined benefit (DB) pension schemes are now granting inflation-driven discretionary increases. When compared with the two

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.