1 September 2020
Sharp fall in DB transfer activity over the Covid-19 lockdown period but average transfer value paid out jumps 30% to over £550,000
- The number of transfer quotations in Q2 2020 was down 25% from the previous quarter, with 1.1% of deferred members receiving a quotation in this quarter. This is the lowest level we have seen since Q2 2016.
- This dip in activity coincided with the Covid-19 lockdown in the UK – in particular the lowest level was in April and May, with June activity returning towards pre-lockdown levels. A number of schemes paused the provision of transfer value quotations over this time, in line with Regulator guidance.
- Take-up rates were also down this quarter, with only 20% of quotes paid out – this is the lowest take-up rate seen since 2016, and well below the average of 27% over the three intervening years.