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All change for DB
transfers - Issue 26

Our viewpoint

Transfer quotations reach new highest average size

  • Following the lowest quotation rate in five years in Q3 2021, transfer activity returned to a more normal level in Q4 2021. LCP’s administration teams issued 131 quotations for every 10,000 deferred members, 22% higher than the Q3 figure and similar to the rates seen earlier in 2021.
  • The average transfer value quoted in Q4 2021 was £413,000. Against a backdrop of rising inflation, this was the highest figure since we started our analysis in 2014.
  • As a result, £153m of transfer quotations were issued in Q4 2021, the highest total since Q2 2019.
  • The take-up rate (proportion of quotations ultimately paid out) rose significantly, from 17% of Q1 2021 quotations to 21% of Q2 2021 quotations. 
  • Take-up however continues to be low for small and mid-range transfers, continuing a trend that began when the FCA contingent charging ban came into effect in October 2020.

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

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