2019 UK defined benefit member choice survey

In April 2015 changes were introduced to allow individuals with pension savings more flexibility over how they use their savings in retirement.

Four years on from these “pension freedom” reforms, sponsors and trustees of many defined benefit (DB) schemes have increased the range of options available to their members. DB members can transfer out of their scheme to access the new flexibilities and increasingly schemes are introducing changes to help support members through the decision-making process, including a review of member communication strategy in order to improve education and engagement.

In this survey, Willis Towers Watson spoke to leading firms of financial advisers to find out what choices over 300,000 DB scheme members have made in the four years since pensions flexibility was introduced. The survey also looks at other types of member options including pension increase exchange (PIE), and provides thoughts on how member option exercises can help trustees and sponsors achieve their longer term objectives in addition to providing members with increased choice.