DB transfer values fell to a record low in mid-January 2025 following a month-end drop in December 2024, according to XPS Group’s Transfer Value Index.
The Index hit £142,000 before recovering slightly later in the month, driven primarily by movements in gilt yields. A continued rise in yields from late 2024 into early 2025 contributed to the decline in transfer values, but a reversal in mid-January saw the Index end the month slightly higher at £147,000.
Meanwhile, transfer activity remained subdued, with XPS Group’s Transfer Activity Index showing a marginal decline to an annualised rate of 15 out of every 1,000 members transferring benefits, broadly consistent with 2024 trends.
XPS Group senior consultant Helen Cavanagh says: “Whilst the Transfer Value Index at the end of January was relatively stable compared with the position at the end of December, the movement between these dates was volatile, with the Index reaching a new low in mid-January.
“Volatility of gilt yields over the past few months shows that it is critical that members have access to high quality support and advice to ensure they are well-informed when making decisions about their pension.”
