We have analysed defined benefit (DB) cash equivalent transfer values (CETVs) over the twelve months to 31 December 2023. 

Our five-year analysis of transfers out of DB schemes suggests that transfer activity peaked in Q4 of 2021. Since this high point, the number of members transferring out of schemes reduced for seven consecutive quarters, reaching an all-time low in Q3 2023.

While CETV activity continues to be mooted by historical standards, Q4 2023 was the quarter that bucked this steady decline in activity, with 15% more members transferring out over the final quarter of the year than in the previous one. 

"With typical CETV amounts rising in recent months in response to falling bond yields, it will be interesting to see whether this trend continues into 2024. If member appetite to consider the transfer option continues to increase, trustees and sponsors may find it worthwhile to review their transfer processes to ensure they are fit for purpose given the significant changes in the financial landscape in recent years."
Liam Mayne Partner and Corporate Actuary, Barnett Waddingham
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