People’s Partnership has launched a new Transfer Outcomes Index, which shows that UK savers could lose up to £1.2bn every year due to making ill-informed decisions about pension transfers.
The Index reveals, for the first time, how much could be at risk across all the people who switched their pension in 2023 from low-cost workplace pensions, which are subject to a charge cap, to high charging retail options, which are not. It is based on the likely scenario that they will continue to consolidate future workplace pension savings into the same retail or non-workplace pension until they retire. The figure has risen in each of the past four years, and is up more than 50 per cent from 2020, when it was £792m.
New analysis of People’s Partnership’s Pension Transfer Outcomes Index, shows that pension transfer losses are projected to rise from £1.2bn in 2023 to £1.7bn by 2027, and by the end of the decade, they are expected to surpass £2bn.