26 November 2020
Transfer quotation activity picks up following the first Covid-19 lockdown period, but take-up rates remain low
- After transfer activity dropped in Q2 2020 to its lowest level since 2016, transfer quotation rates increased by 15% over Q3 2020 with a return to broadly pre-lockdown levels in July and September.
- Somewhat surprisingly given the economic impact of Covid-19, take-up rates were low again in the latest quarter, with only 21% of quotes paid out – this represents an increase from 20% in the previous quarter but is still the second lowest take-up rate seen since 2016 (and well below the average take-up rate of 27% over the three intervening years). The average transfer value paid out was £480,000, the second highest amount we have seen since Q1 2017.
- Of the value of transfers paid out in the latest quarter, 24% was paid to members aged 60 and above – this is the second highest that this level has been since we started our analysis in 2014, perhaps reflecting the impact of Covid-19 on the finances for this cohort.