Newly released HMRC statistics showed a continued decline.

Having reached 20,100 transfers at a value of £1.76bn in 2014-15, this fell to 13,700 transfers at £1.5bn in 2015-16.

There was a further drop in the last financial year, falling to 9,700 transfers at £1.22bn.

See table below for full figures.

There is an expectation of further falls following the change in the rules from March 2017 when all QROPS transfers became subject to a 25% charge, with some exemptions such as if the QROPS is resident in the same country as the individual.

Chartered Financial Planner Rachael Griffin from Old Mutual Wealth said: “We have known for some time that the QROPS market is maturing.

“There have been numerous regulatory changes over the years which have made pension transfers to a QROPS more complex, such as the need to have a UK regulated pension specialist approve transfer cases.

“The new 25% transfer tax charge will undoubtedly show in next year’s numbers where we expect a further decline.

“However, QROPS transfers are just one part of the jigsaw, and there are other wrappers which advisers will use with their clients to help them meet their long term retirement needs.

“With defined benefit pension transfer values still at record highs we expect the pension transfer market to continue to be strong.”

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