Pension Transfers
Written on 10/08/2018

According to the Office of National Statistics (ONS), in 2016 some £12bn was transfered from DB to Personal Pensions.  In 2017, the number is £34bn.  That’s a big number, and most IFAs are on one per cent.  If so, the industry would be sharing £360m per annum between 12,000 advice firms, of whom about 2,000 can do DB transfers, or a total of £180k per annum per firm from this source alone.  No doubt you can trim the numbers – for instance for those avoiding each of the following the IFA,the one per cent and remaining invested. But still, that is a big number, and by all accounts it is growing. The biggest of them all is the BT scheme and that too seems to be reaching a crisis point.   The firm has announced the closure of its defined benefit scheme and has agreed to develop a 'hybrid' solution with the Communication Workers Union.

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