Defined Benefit  

DB transfer activity expected to decline under new rules

"I don’t think this would deter many people from transferring but perhaps it will make them think carefully and certainly put them in a more informed position."

LCP’s quarterly bulletin on transfer activity, published this month, shows the total amount quoted in DB transfers stood at £167m in the second quarter of 2018, almost unchanged from the previous period when it stood at £166m.

Over the 12 months to June 2018, LCP’s administration teams have provided transfer value quotations to 7.2 per cent of deferred members with a value of £705m in total.

The total amounts quoted quarterly by the firm increased slightly on the first quarter of 2018, but were still lower than the record level of activity seen in 2017, the firm said.

More than £74m was paid out on LCP quotes in the last quarter of 2017 with an average size pension of £428,000; this compared to the peak seen in the first quarter of that year, when £92m was paid out with an average size pot of £627,000.