Survey: DB member choice survey 2017

Since greater flexibilities were introduced for those in defined contribution pensions, sponsors and trustees of defined benefit (DB) schemes have increased the range of options available to their members.

Willis Towers Watson’s survey investigates what choices DB members have made since pensions flexibility was introduced in April 2015.

Key findings:

• More than half of members who spoke to an impartial financial adviser chose to transfer out of their DB scheme at retirement in the past year, compared with just over one-third the previous year.
• There was also an increase in the take-up of pension increase exchange offers, with 66% of members who engaged accepting the offer last year, compared with 58% the previous year.
• The trend of offering DB members more flexibility is expected to continue due to member demand and the de-risking of benefits to the scheme and sponsor.