Analysis from Equifax Touchstone, a market leading intermediary database provider, shows that flexible drawdown pension transfers increased by £114.0 million (13.6%) during Q2 2017, reaching £954.0 million.
Q2 figures showed transfers across all products rose by 5.9% to £6.1 billion, including a £75.4 million (2.1%) increase in SIPP transfer sales. This increase highlights the ongoing trend among investors to look for pension products that better suit their retirement needs.
According to the data, which covers more than 90% of the UK’s leading life and pensions companies, total pension investments including transfers reached £12.5 billion in Q2 2017, a marginal gain of 0.6% on the previous quarter.
Sales for 2017 are on trend to exceed 2016, with inflows for the quarter (including transfers) up £4.1 billion (47.8%) year on year. Despite positive quarterly and year on year net inflows, new pension investments declined by 4.1% (£272.7 million) and total SIPP sales (excluding transfers) were down on Q1 2017 by 13.3% (£399.5 million).
John Driscoll, Director at Equifax Touchstone, said: “The Q2 2017 data has remained extremely positive overall, building from an exceptionally strong Q1 performance with significant rises in drawdown transfers. Encouragingly pension inflows have grown once again despite ongoing political and market uncertainty, showing resilience within the UK pension sector.
“Looking ahead to the third quarter of the year, we expect high volumes of pension transfers to continue, particularly from defined benefit schemes to drawdown products, where a number of providers have seen record interest. Defined benefit schemes are currently offering members improved transfer values in an attempt to shift increasing liabilities; this is proving to be highly attractive to individuals seeking evermore autonomy over their financial affairs.”
Equifax Touchstone utilises intermediary and customer profiling tools to enable financial services providers obtain a detailed understanding of their marketplace and client base.
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|Pension type||Q1 2017||Q2 2017|
|Total pension investments (including transfers)||£12,469,386,708||£12,539,628,664|
|Total pension investments (excluding transfers)||£6,667,801,130
|Flexible drawdown (single premium)||£462,495,879||£464,501,505
|Flexible drawdown (transfer)||£839,974,508||£954,023,688|
|SIPP (single premium)||£2,997,164,121||£2,597,645,772|
1 Pension Trans. reflects transfers into Personal Pensions only, not SIPPs or stakeholder pensions
- Figures are representative and designed to illustrate trends – not all product providers submitting data to Touchstone can provide a breakdown between SIPP and flexible drawdown transfers
- Figures do not include regular premiums
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Notes to editors:
Equifax Touchstone Limited is one of the Equifax group companies based in the UK. Equifax Touchstone is registered in Scotland No: SC11340. Registered Office: Exchange Tower, 19 Canning Street, Edinburgh, Scotland, EH3 8EH.
Equifax Touchstone is a leading provider of strategic intermediary intelligence to financial product providers, delivering powerful benefits to its users. It operates a shared investment product data exchange with information provided by over 90 of the UK’s leading financial services companies. It also operates the MyTouchstone database which is powered by the collective sales data of 77 major product providers, fund managers and platforms and inputs from thousands of intermediaries to help them understand how they perform compared to the other firms in their post area and across the UK.
Equifax, Inc. (“Equifax”) is a global information solutions company that uses trusted unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions. The company organizes, assimilates and analyzes data on more than 820 million consumers and more than 91 million businesses worldwide, and its database includes employee data contributed from more than 7,100 employers.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,900 employees worldwide.
Some noteworthy achievements for the company include: Named to the Top 100 American Banker FinTech Forward list (2015-2016); named a Top Technology Provider on the FinTech 100 list (2004-2016); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2017); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015-2017). For more information, visit www.equifax.com.