The number of members accepting a transfer value from their defined benefit pension scheme increased in October and November, according to actuarial, pensions and employee benefit consultancy Xafinity.
The number of members accepting a transfer payment across a sample of pension schemes administered by Xafinity in the two months was double those accepting a transfer payment in January 2015.
The total number, according to figures from Xafinity, rebased to 100 per cent, rose from 118 per cent in January to 209 per cent in October.
The percentage of members requesting transfer value quotations dropped from 200 per cent in June to 150 per cent.
Paul Darlow, head of proposition development, Xafinity, said: “Having observed a big increase in the number of members requesting a quotation of their transfer value in June and July, we have now observed an increase in the number of members actually proceeding to transfer the value of their benefits out of DB pension schemes.
“With an increasing number of DB pension schemes currently reviewing their standard member communications to ensure that members are aware of their options, it will be interesting to see how levels of activity develop in coming months.”
Adviser view
Graham Miles, managing director of East Yorkshire-based MHI, said: “I am sure the trends Xafinity is reporting are mirrored across the industry. There was definitely an initial flurry of activity which is now decreasing.
“While we are all aware of the benefits of DB schemes, there are going to be some members with short service, perhaps with a DB scheme elsewhere who are taking the opportunity to arrange their pension affairs on a more flexible basis.”