An individual transferring a £230,000 defined benefit (DB) pension could lose up to seven years of retirement income if they draw a fixed sum of £10,000 a year, according to XPS Pensions Group research.
In its Member Outcomes Under Freedom and Choice report published on 06 August, XPS Pensions Group highlighted how the charging structure of a receiving vehicle during a DB transfer significantly impacts members' retirement outcomes. It undertook a detailed analysis of 6000 transfers out of XPS-administered schemes since 2016, with a total value of around £1.4bn, looking at how members were exercising their right under Freedom and Choice to leave their employer's occupational pension scheme, to reveal the overall impact on retirement savings. Depending on the choice of retirement vehic...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
