The average transfer value at the end of May was £217,000, the lowest level since June 2016, according to the Transfer Value Index maintained by XPS Pension Group,
Despite the ongoing high inflation rates, the decline of 7 per cent over May was caused by a further rise in gilt yields and a decline in long-term inflation forecasts.
After falling for six months, the rate of members who successfully completed transfers as measured by the XPS Transfer Activity Index modestly increased to an annualised rate of 37 members per 100,000.
XPS Pensions Group member engagement hub client lead Helen Cavanagh says: “We continue to see the rate of potential scam activity referrals tick up. The majority of transfers reviewed are now assessed against the new transfer value regulations, with the overseas investments flag registered in three-quarters of cases where a flag was present.”
XPS Pensions Group head of member options Mark Barlow says: “It is interesting to see a small uptick in members completing a transfer during May, despite the continued slide in transfer values. This could be a response to the cost of living crisis, highlighting the importance of providing support to members to ensure they don’t make an uninformed decision or leave themselves susceptible to scammers.”