Pensions expert Stuart Price, Partner and Actuary at Quantum Advisory, comments on the continuing rise of members transferring their final salary pension to a DC arrangement…
Stuart said: According to a recent study, 55 per cent of defined benefit (DB) members who spoke to a financial adviser chose to transfer out in 2016/17, compared to just 36 per cent during the previous tax year.
Why are more and more individuals willing to give up their DB guaranteed income for what is perceived as uncertainty as to what they will receive in retirement?
Over the past few years, for the DB schemes that we administer, we have seen a substantial increase in the number of members requesting a transfer value and then subsequently transferring their benefits to a defined contribution (DC) arrangement.
There are numerous reasons why transferring out from a DB arrangement is an attractive proposition, not least because of the present inflated values.
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