The number of people transferring defined benefit pensions into defined contribution (DC) arrangements continues to fall according to the latest FCA data.
Its figures show that the number of transfers have more than halved in the space of two years. The figures show there were 18,080 in the 2022/23 tax year, which fell to 7,181 last year ( 2023/24) and now stand at just 6,418 in the most recent tax year (April 2024 to April 2025).
The number of firms that received DB transfers also fell from 118 in 2023/23 to to 104 (2024/25).
Broadstone head of redress Brian Nimmo says: “The substantial fall in the number of DB to DC pension transfers continued in the most recent financial year.
“Rising gilt yields will have had a negative impact on transfer values making a transfer less attractive for those with DB pensions. Another factor will have been regulatory change which has led to a large fall in the number of advisers willing to participate in this area.
“While a transfer may not be in the interests of many DB pensioners, in certain circumstances there will be occasions where it could make good sense. The question remains whether we have now seen an over-retraction in the market which is limiting access to good advice for those with genuine reasons to explore a transfer.”
