Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

DB pension transfer activity hits record low

Open-access content Thursday 14th May 2020
web_ripped_off_iStock-530583132.jpg
Fall in pension transfers / iStock

The number of defined benefit (DB) pension transfers in the UK fell to a record low last month amid continued market uncertainty created by the coronavirus crisis.

XPS Pension Group's Transfer Activity Index shows that the number of completed transfers fell to an annual equivalent of 0.58% of eligible members in April, down from the previous record low of 0.76% in March.

This represents just under six in every 1,000 eligible members transferring, while requests for transfer value quotations were found to have fallen by just over a third compared to last April.

“The ongoing COVID-19 crisis has predictably caused a dip in transfer activity,” said XPS Pension Group partner Mark Barlow. “The record fall will be a result of some schemes putting a temporary halt on transfers, as well as members being less inclined to transfer in such uncertain times. 

“We may see a rebound in activity as we emerge from lockdown, although the observed decline in requests in April suggests that any upturn will be some months away, due to the lag between transfer requests and completions.”

Despite the fall in transfer activity, the researchers found that valuations experienced a much more stable April, increasing by around 3% over the month.

XPS Pensions Group’s Transfer Value Index increased from £242,600 at the end of March, to £249,300 at the end of April, driven by a fall in gilts yields, which was partially offset by a smaller fall in inflation.

This comes after The Pensions Regulator (TPR) issued guidance advising trustees to write to DB members explaining the risks of transferring, and urging them to consider the decision carefully.

“The regulator’s updated guidance continues to focus on the risks associated with defined benefit transfers, particularly the heightened risk of pension scams in the current environment,” Barlow continued.

 “The letter to members will help some to think twice before falling victim to a pension scam, although trustees should not think this is the complete solution.”
 

You may also be interested in...

Transfers between defined contribution (DC) pension schemes must still be completed in good time, despite the COVID-19 pandemic, according to updated guidance issued by The Pensions Regulator (TPR).

TPR issues updated guidance for DC schemes

Transfers between defined contribution (DC) pension schemes must still be completed in good time, despite the COVID-19 pandemic, according to updated guidance issued by The Pensions Regulator (TPR).
Thursday 14th May 2020
Open-access content
web_p8_finance_istock-478174086_copy.png

Signs of recovery for DC pensions post-COVID-19

There are encouraging signs of recovery for the expected retirement income of defined contribution (DC) pension scheme members in the UK following dramatic falls in March due to the COVID-19 crisis.
Wednesday 20th May 2020
Open-access content
iStock-1158337571.jpg

FTSE 100 pensions in good health prior to COVID-19

Pension schemes at the UK's 100 largest listed companies were in their best financial position for 20 years at the start of the coronavirus crisis, research by Lane Clark & Peacock (LCP) has found.
Tuesday 26th May 2020
Open-access content
web_crash_istock-503640774.png

DB pensions to rely on investments despite COVID-19 turmoil

Most UK defined benefit (DB) pension schemes will rely heavily on investment returns, rather than seek additional cash from sponsors, to achieve their funding targets during the coronavirus crisis.
Monday 1st June 2020
Open-access content
iStock-870901960.jpg

Ransomware attacks soar 25% during COVID-19 crisis

Ransomware cyber attacks increased by 25% worldwide in the first quarter of this year compared to the final three months of 2019, based on incidents reported to Beazley Breach Response (BBR) Services.
Tuesday 9th June 2020
Open-access content
iStock-1098111742.jpg

Workplace pension income rises by more than a third

Income from workplace pensions in the UK has risen by more than third in just 10 years, analysis by financial services firm Equiniti has revealed.
Wednesday 10th June 2020
Open-access content
Also filed in
News
Topics
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ