Transfer Demands for DB Schemes Will Increase to up to ‘A Third’ In 12 Month

According to 38 UK Poll Advisers, Old Mutual International has shown a high level of scheme deficits and incredibly low gilt yields. Along with higher transfer values, members have increasingly become more concerned with the schemes ability to meet their proposed long term liabilities.

An 83% majority has reported an increase in demand in the 12 months, with 54% saying they have witnessed that the increase was incredibly high.

With members increasingly becoming more concerned about the sustainability of DB schemes. However, it has been mentioned that the Pension Protection Fund will protect members in the case of a company going bust as the guarantee of benefits is 90%.

It may be more sensible to transfer schemes, instead of waiting for confirmation on whether or not the scheme exists.

With the snap general election in place, the minority government may put DB schemes as a low priority in their list, meaning that there is an importance to make proper decisions immediately.