DB transfer values fall to pre-lockdown levels

5% drop in February

clock • 1 min read

Defined benefit pension transfer values have fallen to pre-lockdown levels following the largest month-on-month decline.

According to XPS's Transfer Watch, a 5% drop in transfer values was recorded in February 2021 from the month before. This means transfer values are now returning to levels last seen in March 2020 before the first national Covid lockdown. The fall in values has been attributed to a rise in government bond yields throughout the month. This in turn increased discount rates used to value members' benefits. Transfer activity has not been impacted and this has remained consistently over 0.60% for the past five consecutive months, XPS added. "Transfer values plunged during February, retur...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell has called on chancellor John Healey to commit to a pension tax lock

clock 06 October 2026 • 2 min read
Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

'Real-world consequences of allowing pension tax speculation to run unchecked'

Rachel Vahey
clock 05 October 2026 • 3 min read
Triple lock played 'important role' but it would 'always need to end'

Triple lock played 'important role' but it would 'always need to end'

Pensions industry reacts to triple lock change

Holly Roach
clock 30 September 2026 • 4 min read