Defined benefit (DB) transfer activity has "passed the peak point" after the market dropped some 20% in six months, according to the latest data from the Office for National Statistics (ONS).
According to the data, the pension transfer market dropped from £8bn in Q2 2018 to £6.3bn in Q4, representing a drop of 20%. AJ Bell senior analyst Tom Selby said the findings could suggest we have "passed the peak point" when it comes to pension transfer activity. Since the launch of the pension freedoms in April 2015, some £92bn has been transferred. Selby said it was tough to overstate the magnitude of such a figure, the vast majority of which was likely to be made up of savers ditching their DB schemes in favour of the flexibility of defined contribution (DC). He continued: "A ...
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