The value of pension transfers hit £10.6bn in the first quarter of 2018, setting a new record, the latest data from the Office for National Statistics has found.

Publishing data on investment by insurance companies, pension funds and trusts, the ONS also revealed the total value of pension transfers for 2017 has been revised up by £2.5bn, to £36.8bn. Despite setting a new record for annual transfers, Q1 2017 saw transfers of £7.5bn, suggesting that 2018 could overtake 2017.

AJ Bell senior analyst Tom Selby believes that vast majority of the transfers are likely to be people quitting defined benefit schemes to access defined contribution schemes.

Selby said: “The stampede to quit guaranteed defined benefit pension schemes shows no signs of slowing down, with the first three months of 2018 setting another record for pension transfers. We have witnessed a perfect storm for DB transfers in the UK, with a combination of the attractiveness of the pension freedoms, high transfer values and headlines about high-profile companies – most notably BHS and Carillion – going bust all undoubtedly influencing people’s decision to exit.

“The Q1 2018 figure also likely includes a large number of transfers away from the British Steel Pension Scheme. Over time pensions transfer volumes should edge downwards as the number of people with significant funds eligible for a transfer diminishes, but as things stand we remain in the eye of the storm. Those who have decided to move their pot away from the security of DB will now need to take a much more active role to ensure they get the retirement they want.”

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