The increase in members requesting transfer value quotations in respect of their defined benefit benefits has settled at around 20 per cent following a significant spike in March 2015, according to figures from Xafinity.
In the first three months of 2015 Xafinity observed a 60 per cent increase in the number of members requesting transfer value quotations from DB pension schemes. Since March 2015, however, the number of transfer value quotations being requested has started to tail off, with May 2015 activity just 15 to 20 per cent higher than in January 2015, according to data from schemes administered by Xafinity.
Xafinity head of proposition development Paul Darlow says: “These figures suggest that, as April approached, there was significant pent-up demand from members who were considering transferring their pension benefits into the defined contribution environment in order to access the new flexibilities. Whilst the number of transfer value quotation requests has since begun tailing off, activity remains above that observed in January 2015.
However, these overall figures mask some very significant variations between individual pension schemes – some pension schemes continue to experience activity levels consistent with, or even greater than that seen in March 2015. As the payment of significant amounts of transfers can have a material impact on pension schemes, it remains important for trustees to consider the actions suggested by The Pensions Regulator in its recent guidance to ensure that their pension schemes are protected.”