The Pensions Regulator has warned savers looking to transfer their pension pot during the Covid-19 outbreak that the move is “unlikely” to be in their best long term interests.

The TPR has issued guidance to pension trustees today asking them to send DB members looking to move their retirement funds a letter warning them of the risks during the pandemic.

Trustees should caution scheme members to consider the move carefully.

The TPR is concerned that some pension savers will move their pension from a  DB scheme to a DC scheme without considering all the consequences.

Last year £34billion was transferred from DB schemes, said TPR.

The regulator says that with Coronavirus causing market volatility and uncertainty for businesses and personal finances, pension members could be at risk of making “knee-jerk decisions” which hit their pensions.

Charles Counsell, TPR’s chief executive, said: “We are determined to do all we can to protect savers’ retirements from the unprecedented impact of Covid-19.

“A decision to transfer a pension pot that’s taken a lifetime to build is a very serious one and we’d urge members to be very, very careful making any transfer decisions at this time.

“That’s why for the foreseeable future, anyone who is looking to transfer their benefits out of their DB scheme should be sent a new warning letter to make them stop and think as well as point them towards free, impartial guidance available from The Pensions Advisory Service.”

Charlotte Jackson, head of pensions operations and consumer protection at the governmenrt-funded Money and Pensions Service, said: “Many people make decisions about their pensions without fully understanding of all of the long term consequences of their choices. The fallout from COVID-19 pandemic is putting significant additional pressure on people.

"As hard as it is, we urge people not to make any rushed decisions, and seek impartial guidance or advice about options open to them.”