DB transfer values remained steady through most of 2024 but dropped sharply in the final quarter, hitting its lowest point in December, according to data from XPS Group.
The group says that an almost 5 per cent decline in the Index in December 2024, the biggest decline in more than 25 years, was brought on by a late-year rise in gilt yields and flat inflation predictions.
Transfer activity remained low; according to December’s Transfer Activity Index, 17 out of 1,000 members transferred benefits annually, which is in line with 2024 averages and reflects a decline in interest in pension transfers as a result of lower transfer values brought on by higher gilt yields since late 2022.
XPS Group senior consultant Helen Cavanagh says: “Significant increases in gilt yields in the last month of 2024 brought the Transfer Value Index down to the lowest month-end value since the Index began. After a relatively stable year, gilt yields have reached levels not seen since the early 2000s, causing the decline in transfer values over December.
“Despite this downturn, the overall level of transfer activity remained notably stable over the course of the year, showing minimal fluctuation month to month. Whilst overall transfer volumes are down, we believe many members still view this as a valuable option when planning for their retirement arrangements.”