The transfer value of DB pensions continued to fall in March, amid ongoing market volatility.
XPS Group’s Transfer Value Index fell to £142,000 in March, a new record low. The main driver of this decline was a further increase in gilt yields, coupled with falling long term inflation expectations. Data from XPS Group shows that this index has remained below £150,000 for most of 2025.
XPS says while the latter part of the quarter saw increased volatility in equity markets, due to the initial US tariff announcements, the longer-term impact on the wider financial markets is yet to be seen.
However despite this low figure, there was an increase in XPS Group’s Transfer Activity Index in March, with an annualised rate of 21 members in every 1,000 transferring their benefits to alternative arrangements. This is the first time the Index has surpassed an annualised rate of 20 members since July 2024, and reverses the downward trend that has been observed over the past few months. XPS Group says this uptick in transfer activity may indicate a growing confidence among members in choosing a pension transfer as a retirement planning option, despite the current market uncertainty.
In addition XPS Group’s scam protection services showed at least one scam flag warning was raised in 85 per cent of cases it reviewed. This is a 7 per cent decrease from the previous month, marking the largest single-month change since mid-2023.
XPS Group senior consultant Helen Cavanagh says: “Despite record-low transfer values, we saw an uptick in transfer activity in early 2025.
“Due to the ongoing uncertainty over tariffs and potential trade deals with the US, markets are likely to remain volatile late into this year. It is more important than ever that members fully understand their benefit entitlements and that they receive high quality independent financial advice when planning for their retirement, particularly if transferring is an option they are considering.”
