DB member choice survey 2018

April 9, 2018
| United Kingdom

In April 2015 changes were introduced to allow individuals with defined contribution (DC) pension savings complete flexibility over how they use them in retirement.

Three years on from these freedom and choice reforms, sponsors and trustees of many defined benefit (DB) schemes have increased the range of options available to their members. By transferring to a DC arrangement at retirement, DB members can access the new flexibilities and schemes have introduced changes in how they communicate with and support members facing more choice at retirement. Many schemes also continue to extend flexibilities to members who have already retired, allowing them to change the shape of their benefits.

In this survey, Willis Towers Watson spoke to the leading firms of financial advisers to find out what choices over 200,000 DB scheme members have made in the three years since pensions flexibility was introduced, and also provide some thoughts on current issues in the DB transfer market and how these might be addressed by scheme sponsors and trustees alike.