Take up rates and quotation rates remain close to historically low levels, changes to inheritance tax set to generate £35bn in extra taxes and LCP Pulse sees higher take-up rates and lower quotation rates
- The take-up rate for quotations issued in H1 2024 continues to remain low at 5%, and is the joint lowest half yearly figure we have seen since we started our analysis 10 years ago. The low take-up rate coincides with low average transfer values. For quotations provided in H1 2024, the average transfer value paid was £149,000, which is the second lowest half yearly figure we’ve seen since we started our analysis in 2014.
- LCP have looked at the potential impact from recent changes to inheritance tax. Our projections show that the aggregated inheritance tax collected in respect of DB to DC transfers alone will exceed £35bn over the next two decades as the DB transfer generation gets older.
- In 2019 LCP launched Pulse where members can view illustrative transfer values on a member website. In addition to providing an improved service to members, we have seen that the quotation rates have been consistently lower, and take-up rates have been consistently higher for schemes where members are able to view their illustrative transfer value on a scheme website.
Speak to our experts Bart Huby or Jim Little for more information.
