Members cash in before slowdown as transfer values fall

• Transfer amounts: For quotations provided in Q4 2021 – the latest quarter with complete payment data - the average transfer value paid was £617,000. This is the second highest figure since our analysis began and coincides with an unusually high average quotation size of £407,000 in Q4 2021 amidst rising inflation.
• Take-up rate: The take-up rate for quotations issued in Q4 2021 was 23%, up from 15% in the previous quarter. The increase may have been due to members taking advantage of the higher transfer values quoted in Q4 2021. However, partial data for Q1 2022 suggests a potential significant fall in the take-up rate, possibly linked to the new transfer regulations that came into force on 30 November 2021.
• Quotation rate: The quotation rate fell significantly in Q2 2022. LCP’s administration team issued 110 quotations for every 10,000 members, 27% lower than the Q1 2022 figure and the lowest rate since Q2 2016. This drop was the largest between any two successive quarters since we started our analysis in 2014.

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