All change for DB
transfers - Issue 26
Our viewpoint
8 March 2022
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.