Two thirds of intermediaries forecast an increase in defined benefit transfers in the next 12 months, an Investec Wealth & Investment study has found.
Just two per cent of the 108 advisers polled for the research anticipated the reverse – a fall in enquiries over the same period.
In addition, 72 per cent of respondents claimed to have received DB transfer enquiries – up from 68 per cent recorded from a separate poll in June last year.
However, the study suggests that many advisers have no appetite to advise on DB transfers, despite the volume of business potential.
The top reason given – cited by 71 per cent of respondents – was that the risks associated with challenges to historic advice were too high, while nearly half of the sample said the process is complex and clients are resistant to paying appropriately.
A lack of regulatory support was cited by 45 per cent of advisers.
What is more, almost a third of IFAs fear there is too much focus by the regulator on the ‘headline’ figures involved in a DB transfer at the expense of ‘softer’ client needs.
Mark Stevens, head of intermediary services at Investec Wealth & Investment, said: “As the wider market environment adapts to a ‘new normal’, the values being placed on DB scheme transfers have become very attractive and the demand for qualified advice shows no sign of slowing down.
“DB scheme transfers have increased the opportunities for IFAs to advise new clients on their pensions and broader financial needs.”
Adviser view
Howard Spargo, chartered financial planner at Bolton-based Camargue House, said: “We have seen an increase in DB transfers also. I think more and more people are calling their pension providers following changes to pensions to ask them what the value of their pension pots is, only for them to find out that they have DB schemes.”
