DB transfer requests soar in April

Transfer requestsThe number of DB scheme members requesting a transfer value of their benefits has returned to the highs seen in the immediate aftermath of the freedom and choice reforms, research from Xafinity shows.

Requests for transfer values shot up to double their pre-pension freedoms level in June 2015 before falling back to around 40 per cent above pre-2015 levels. But last month they spiked at 90 per cent above pre-2015 levels.

But Xafinity says the number of members actually deciding to transfer has not increased significantly despite an initial spike last year.

Xafinity head of proposition development Paul Darlow says: “I suspect that many of those who request a quotation of their transfer value are just interested in knowing what their benefits are worth, and are not seriously considering taking a transfer. Given that pension schemes are increasingly being proactive in making sure that members understand all of their options, we could in the future see less people request transfer value quotations, but an increasing proportion of those actually deciding to transfer.”