The number of defined benefit transfers completed in the first three months of 2017 soared by 166 per cent year on year from 2016, Xafinity has reported.

According to Xafinity’s monthly data, from a sample of pension schemes, the total number of completed DB transfers was “relatively stable” until October last year and then showed a sudden influx.

In addition, the number of requests for transfer value quotations increased by over 70 per cent over the first quarter of 2017.

Xafinity head of proposition development, Paul Darlow commented: “Since October last year the amount of transfer activity has increased significantly. Indeed, the number of transfers being completed has more than doubled and the trend looks set to continue with transfer values (as measured by the Xafinity Transfer Value Index) remaining high.”

“The impact of financial conditions over the last year has been significant and this has been a material consideration for pension scheme members, with an increasing number requesting 'partial transfers' as well as full transfers. Whilst the flexibility around partial transfers would be a good thing there are still barriers to overcome, with the main issue for many scheme providers being the administration complexity,” Darlow added.

“This increase in the number of people opting to transfer their DB pensions has put regulation of this market firmly in the spotlight. With two documents on DB transfers published by the FCA already this year and the possibility of a thematic review impending, it is clear 2017 is going to be another interesting year for DB schemes.”

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