Insurance and savings trade body the ABI has warned the Department for Work and Pensions (DWP) that a public pensions 'consolidator' must avoid undermining the DB scheme buyout market.

A fifth of over 50s rely on DB pensions to provide almost half of their retirement income but the numbers are set to fall, according to Standard Life’s Retirement Income Almanac.

The DB Pensions Transfer Value Index compiled by XPS Pensions increased by 2.6% during November to £156,000, the biggest increase seen since March.

Rising gilt yields and falling inflation expectations have pushed the typical value of a DB pension transfer to its lowest level in seven years.