According to Origo, a fintech provider that enables pension transfers between pension providers, the number of pension transfers has increased by 115% since April 2015 when the UK pension flexibilities were introduced. Origo provides pension transfer services to around 90 UK pension providers and the figure represents the total volume of transfers through them.
Conversely, annuity transfers fell by 77% since the pension freedoms were introduced. Origo Managing Director Paul Pettit said the figures showed that the UK pension freedoms had “had a major impact on the way people engage with their pension”. More flexible products like SIPPs, that enable people to access pension income and at the same time remain invested, have clearly benefited over annuities as a result of the new pension freedoms.