Pensions - Articles - ONS transfer data show a fraction of assets being held


Andrew Tully, Technical Director at Canada Life comments on the ONS pension transfer

 The data released by the ONS reveals that around £127 billion has been transferred out of UK occupational schemes since 2015. This figure may sound staggering at first however it really only represents a tiny fraction of the assets currently being held within pension schemes, so we can assume that most people appear to be staying put.

 Transfers out of DB schemes have rightly been the subject of intense scrutiny recently and it’s right that we continue to have this robust regulation in force. The majority of savers will be better off by staying in their DB scheme but it’s important that individuals are aware of the option and have access to the quality advice required. Some individuals may stand to benefit from a transfer if they are in ill health or have expensive debt.

 “On the other hand, DC to DC transfers can be more beneficial for the individual. Transferring in this instance can provide greater simplicity by having all assets in the one place, while also delivering lower charges, a wider range of investment options or greater functionality at the point of drawdown. However, it’s still worth obtaining advice in this case as transferring could mean you lose out on benefits like guaranteed annuity options or protected tax free cash.”
  

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