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
  • 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.

Read Quarterly Review

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.

Explore the report