The number of small pot transfers, £10,000 or under, increased by 42% over the past two years, while the number of pension transfers under £1,000 rose by 32%, analysis from Origo has revealed.

The Origo Transfer Service showed that, in the same time period, the number of pots transferred which were under £30,000, the threshold beyond which an individual must seek financial advice before a transfer can be made, also rose by 39%.

Origo CEO, Anthony Rafferty, pointed out that the percentage rise in the number small pot transfers through the Origo Transfer Service is “marked and over and above” the 34% rise in transfers undertaken by the service since 2020.

The analysis also showed that average transfer values for pensions accessed by those aged 31 to 45 were all under £30,000.

More broadly, it found that the top three ages at which pension transfers occurred were, in order, 55, 56, and 60.

The top three ages at which pension to annuity transfers occurred, meanwhile, were 65, 66 and 60, and the average values for these transfers were all in excess of £30,000.

In light of the findings, Rafferty stated that it would “not be unreasonable” to suggest that the economic situation in the UK has been playing into whether and when some consumers are accessing their pensions, raising concerns over the potential impact on savers' retirement income.

“Consumers accessing their pensions as short-term fixes to the cost of living crisis is a concern for the industry, as when inflation subsides, they could potentially have damaged their long term and retirement saving as a result,” he explained.


This article first appeared on our sister title, Pensions Age.

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