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All change for DB transfers - Issue 23

Our viewpoint

Quotation activity edges back up towards pre-pandemic levels, while take-up rates fall to lowest level since Q1 2016

  • Despite the imposition of a third national lockdown at the start of January 2021, transfer
    quotation rates rose 17% from Q4 2020 to Q1 2021, to 136 quotations per 10,000 deferred
    members.
  • This compares to a quarterly average of 145 quotations per 10,000 deferred members in the year to 31 March 2020, before transfer activity dropped off sharply with the arrival of the Covid-19 epidemic.
  • Of the 433 quotations issued in Q3 2020 – the most recent quarter with complete payment
    data – 19% (82) were subsequently paid out. This represents a decrease from 26% in the previous quarter and is the lowest take-up rate seen since Q1 2016.
  • These 82 payments correspond to 0.25% of all deferred members – the lowest payment rate
    since Q2 2016. The reduction in payment activity may be linked to the ban on contingent
    charging by financial advisers which came into effect on 1 October 2020 and is considered in the next section.

Speak to our experts Bart Huby or Jim Little for more information.

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Accounting for Pensions 2021

Accounting for Pensions 2021

Thought leadership report

Pensions for FTSE100s return to surplus and strategies evolve as companies target the end game.

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