Transfer activity falls sharply following Covid-19 lockdown – but early signs of starting to pick up again.

• Since the start of the Covid-19 lockdown in the UK (week commencing 23 March 2020) we have seen a sharp reduction in transfer quotation activity, with the rate of requests falling initially to well below 50% of pre-lockdown levels. The most recent three weeks have though seen a material increase in activity – perhaps a precursor to a resumption of normal (or higher) activity levels as we come out of the lockdown?
• Before the lockdown transfer activity had in fact been increasing. The number of transfer
  quotations in Q1 2020 was up 20% from the previous quarter, with 1.5% of deferred members
  receiving a quotation in this quarter. This is similar to the levels of activity seen in late 2018 and early 2019.
• Take-up rates in respect of quotations provided in Q3 2019 were however the lowest seen since 2016, with only 22% of quotes paid out. This is well below the average take-up rate over the last 3 years of 27%. Of the quotes paid out from Q3 2019, 75% of the total value subsequently paid out was to members aged 55 and over; this is the highest proportion since we started our analysis on 1 January 2014.

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

Click here to read the update