The volume and value of pension transfers has increased for yet another year, according to year-on-year data from Origo via its Options Transfers service.
In 2017 alone, almost £31bn of pensions money was moved by the service, across more than half a million transfers throughout the year, with an average pot size of £57,000.
This represents an increase of 27% since 2016, when Origo transferred some £24.3bn of pensions money, and 44% since the pensions freedoms were introduced in 2015, when it transferred £21.5bn.
SIPP business booming
The data showed transfers into SIPPs dominated the pension transfer market in 2017, accounting for more than half (51%) of all transfers-in through the service. It also identified a 30% increase in volume and a 39% increase in the value of the transactions into SIPPs over the 2016 figures.
According to Origo, since pension freedom was first announced in 2014, volumes of transfers into SIPPs have almost doubled (up 98%) and values have more than doubled (up 121%).
Origo managing director Anthony Rafferty said more people had sought to move their pension money to benefit from the flexibility offered by pension freedom.
"Transfers are likely to continue as more people reach the age at which they will want to consider transferring their pension to access the freedoms," he said. "Our data shows the average age for people transferring their pension is 53.
"SIPPs in particular have seen an influx of business, with an increase of 50% in transfers through the Options Transfers service since 2015 and a 67% increase in values in the same period." Rafferty said he expected transfer volumes to continue to grow in the year ahead.
In October, the Financial Conduct Authority said it deemed fewer than half (47%) of the 88 defined benefit transfers it reviewed since 2015 - where the recommendation was to transfer - to have been suitable.
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