04 Apr 2018

Research: DB member choice survey 2018

This survey looks at the pension choices of more than 200,000 defined benefit (DB) scheme members since pensions flexibility was introduced three years ago.

Key findings:

The percentage of members transferring out of their DB scheme varies enormously from single figures in some schemes to above 80 per cent in others. The data shows that the range of outcomes is very broad.
Factors that influence people to transfer out can be split into three areas: those that can be controlled by the scheme, environmental factors and factors relating to the member.
Over the last 18 months, there has been an increase in the number of members electing for a mix of retirement solutions. This trend is expected to continue.
It is expected that most DB schemes will soon follow the practices evidenced in the survey. Ie actively communicating with members and providing them with support to make the right decisions about how to access their retirement income.

This Willis Tower Watson survey also provides insight into current issues in the DB transfer market and how these might be addressed.