The total value of all pension transfers hit £8.6bn in Q3 2018, according to figures from the Office for National Statistics (ONS).
The figure is down from a record quarter of £10.5bn in Q1 2018, but up slightly from the £8.2bn transferred between April and June earlier this year, which represented the first quarter-on-quarter fall of pension transfers since pension freedoms came into effect.
AJ Bell senior analyst Tom Selby said: “Savers dashing to exit their defined benefit (DB) pension schemes has been one of the big stories of 2018, with the collapse of big-name sponsors like BHS and attractive transfer values tempting savers to swap stability for flexibility.
“The pension freedoms – and particularly the generous tax treatment of defined contribution pensions on death – may also have played a part, while many will inevitably have been tempted by the stellar returns on offer in recent years.”
Selby suggested the volume of transfers will decline as advisers exit the market, due to increased regulatory pressure on the sector and rising professional indemnity (PI) costs.
“Despite that,” he added, “the decline of DB is likely to be a story that runs through into 2019, particularly as once mighty high street giants struggle desperately to make ends meet.”