The number of people looking to transfer from DB to DC has doubled since the pension reforms, with a greater proportion of older scheme members looking at transfers, according to data from Selectapension.
The pension and investment software provider found Royal London is the most selected provider chosen by advisers for a potential transfer from a DB scheme
Selectapension has seen a 106 per cent increase in advisers processing data of people looking to review their DB scheme in the three month period following the introduction of pension freedoms, compared to the same period a year ago.
The data also shows that advisers have been reviewing requests from clients in an older demographic compared to the same period compared to last year. In 2014, 59 per cent of DB reviews were for those over 50, but in 2015 the figure has has risen to 77 per cent. Selectapension says this suggests an increase in people approaching retirement exploring their options and potentially transferring out of their DB schemes.
Data from Selectapension’s DB Transfer Analysis tool found that the top providers selected by advisers for a potential transfer from a DB scheme as of June 2015 were Royal London, followed by Scottish Widows, Prudential and Liverpool Victoria.
Selectapension managing director Andy McCabe says: “Pension freedoms have started to make a considerable impact on consumers and have acted as a catalyst for many to reassess whether remaining in a DB scheme is the best option.”