Surge in Pension Transfers Thanks to ‘Bumper’ Valuations

Investors look to cash in company pensions, as transfer values now worth more than the average family home

Emma Simon 19 June, 2017 | 3:33PM

The number of people transferring their company pension has soared by 50% in the past year, according to new research from Royal London.

The insurer surveyed more than 800 financial advisers, who said they had seen record numbers looking to transfer out of final salary pension schemes. The average value of these transfers was between £250,000 and £500,000 – according to this research. This is significantly more than the value of the average home (£216,000).

These company pension schemes – also known as defined benefit (DB) pensions – offer employees an earnings-linked pension that is guaranteed for life. These pensions, often described as ‘gold-plated’ pensions, usually offer inflation-linked pension increases in retirement, and will pay a widow or widowers’ pension.

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About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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