DB transfer activity has fallen for the third consecutive month, hitting its lowest rate since the index was established in 2018, according to XPS Group’s Transfer Activity Index.
There was an annualised rate of 13 members in every 1,000 transferring their benefits to alternative arrangements in February 2025.
According to XPS, the fall suggests that members are becoming increasingly cautious when making decisions about their retirement arrangements.
Meanwhile, the Index remained relatively stable over February 2025, ending the month only slightly lower than at the end of January, at £146,000.
This is in line with the previous lowest month-end value recorded in December 2024 and was in part driven by a slight decrease in long-term inflation expectations.
XPS Group senior consultant Helen Cavanagh says: “The continued decline in transfer activity highlights a notable shift in member behaviour and could point towards a new norm within the transfer landscape. Although we have observed a jump in the Scam Flag Index this month, the average Index over the past 12 months is lower than the peak we observed in mid-2022 following the introduction of the transfer regulations in late 2021.”
