A total of 90 per cent of pension schemes have recorded a rise in transfer value requests from members over the last 18 months, Aon has found.

According to a recent survey of 300 pension schemes, Aon noted that with transfer value requests rising, 40 per cent of schemes have experienced a significant increase. As a result, a further 30 per cent of schemes have taken action to increase the level of automation of transfer calculations in the last 18 months.

This growth in interest since the pension freedoms has also led to an uplift in schemes deciding to provide support to members at the point of retirement.

Aon found that of the schemes surveyed, 55 per cent are including information in retirement packs about the transfer value option but not the figures, while 18 per cent are detailing the transfer value amount. A further 10 per cent are doing this along with online modelling tools, and/or paid for IFA advice and 10 per cent are considering making these available in the next 12 to 18 months.

Only 16 per cent are just following the current statutory requirements.

Aon senior partner and head of the member options team Ben Roe, said: “Our survey highlights that the UK’s DB schemes are seeing the full effect of freedom and choice, with both schemes and members now having some points of reference from other schemes on the way that DB to DC transfers can be undertaken.

“Most telling in this respect is the level of support that schemes are now offering to members. Given the industry’s concerns around the quality and cost of financial advice, trustees and sponsors are increasingly putting in place preferred independent financial advisers (IFAs), financed by the members or in 80 per cent of cases by the sponsor or trustees.”

Roe concluded that the results of Aon’s survey illustrate the growing appetite among members for transferring their pensions. “A more standard approach – involving offering advice and avoiding the risk of members making the wrong move – is gradually evolving and this is enabling more trustee boards to feel comfortable in initiating member options exercises,” he said.

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