All change for DB transfers - Issue 24

Our viewpoint

Transfer market hollowed out after contingent charging ban takes effect

  • Of the 393 transfers quoted in Q4 2020, only 15% were subsequently paid out. This is the
    lowest quarterly take-up rate since 2015 and continues the steady downward trend in take-up
    rates since the peak of 34% in 2017.
  • Take-up rates fell for transfers of all sizes, but the upper mid-range of the market saw the
    biggest drop. Only 12% of the 51 transfers quoted between £400,000 and £800,000 in Q4
    2020 were paid out, compared with 32% in 2019 before the contingent charging ban and a
    high of 51% in Q3 2017. This is covered in more detail in the next section.
  • Meanwhile, quotation rates stabilised over Q1 and Q2 2021 at an annualised rate of 54
    quotations per 1,000 members, close to pre-Covid rates, although the latest data on transfer
    requests indicates a fall in activity in July.

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

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