Just under seven in 10 (69%) of people who have transferred a defined benefit (DB) pension to a defined contribution (DC) pension in the past four years have said that they are satisfied with their choice, OAS has found.

Analysing the Financial Conduct Authority’s (FCA’s) Financial Lives survey, it was found that just one in 10 (10%) of people with a DB pension have considered a transfer.

However, just over one third (36%) of these people have spoken to their financial adviser about moving to a DC pension, with 25% saying they think they would proceed with a transfer.

Head of redress solutions at OAC, Brian Nimmo, said: “DB pensions offer huge security in retirement in providing certainty of income. There is a reason most DB schemes are now closed to new members – paying out such generous pension promises is hugely costly. Ultimately most people are likely to be better served by remaining within their DB pension scheme.

“In the work we do, we see firsthand the extent of the pension losses that many individuals have suffered through leaving the relative safety of their DB pension.

“Regulations around financial advice have been a focus for the FCA in recent years and it has tightened up its rules significantly which is a positive in establishing greater trust. Yet it is worrying that little over two thirds of people who have completed a transfer in the last four years have said that they were satisfied with their decisions and that huge numbers are still considering it.

“We’d urge everybody considering a DB transfer to discuss the matter with a fully qualified, regulated financial adviser to get a true sense of its impact on their standard of living throughout retirement.”

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