Pensions  

Tideway handles 40 final salary transfers a month

Tideway handles 40 final salary transfers a month

Tideway Investment Partners has reported a massive increase in demand for final salary transfers, in further evidence that pension freedoms are encouraging pensioners to ditch their defined benefit (DB) pensions.

James Baxter, the firm’s managing partner, said his firm was advising on around 40 DB pension transfers a month, a figure that dwarfs the 10 to 12 transfers a year it saw before pension freedoms were introduced in 2015.

About 50 per cent of those transfers were referred to Tideway by other advice firms, who preferred not to advise on DB transfers themselves, Mr Baxter said.

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He said Tideway now had 30 advice firms signed up to its DB transfer service, and was adding five or six new firms a month.

He said the average transfer value was about £450,000.

While pension freedoms were the main reason for the huge spike in interest, Mr Baxter said other elements were at play, in particular the negative press surrounding the sustainability of many company DB schemes.

“Headlines on the BHS and Tata Steel pensions are undermining trust in the implicit final salary pension guarantees,” he said.