Just over two thirds (69 per cent) of savers who transferred a defined benefit (DB) pension to a defined contribution (DC) pension in the past four years were satisfied with their choice, research from OAC has revealed.

The survey also found that a further 10 per cent of those with a DB pension had considered a transfer and, of those, a quarter (25 per cent) think they will proceed with a transfer.

However, the research revealed that only 36 per cent of savers had discussed the issue with a financial adviser.

OAC, part of the Broadstone group, highlighted the findings as evidence of the potential consumer danger that still waits in the DB transfer market, arguing that the number of savers still considering a DB to DC transfer is "worrying".

OAC head of redress solutions, Brian Nimmo, stated: “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 first-hand 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 Financial Conduct Authority (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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