The number of defined contribution (DC) and defined benefit (DB) members seeking retirement quotes has risen by 56 per cent in the last year, according to Aon Consulting.

The employee risk and benefits management firm has launched its Aon Admin Tracker, which has shown that DB schemes saw a 55 per cent increase in quotes and DC saw a 71 per cent rise.

Nearly 350,000 members from over 35 UK DC and DB schemes were analysed and compared to results in Q1 2008, and found that transfer-out quotes have increased by 17 per cent overall in the past year - 20 per cent in DB and eight per cent in DC. This, Aon said, illustrates the amplified financial concerns among members due to the economic uncertainty.

However, despite these results, only 0.02 per cent of DC members in the sample took the decision to actively switch their funds.

"The Aon Admin Tracker will be a useful tool in measuring how members are managing and viewing their pension funds," commented Colin Hamilton, commercial director at Aon Consulting. "While figures for the Q1 Admin Tracker reveal a heightened anxiety among scheme members, the lack of investment activity may surprise some given the unprecedented year.

"However, minimal investment activity is not necessarily a bad thing in the current economic climate. Members must be well informed and switches made for the right reasons, always bearing in mind that their pension represents a long-term investment."

Hamilton added that it is now more important than ever for members to receive the correct education and advice about their retirement planning.

- Pensions Age May 2009

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