The value of DB transfers have increased for the first time this year according to data from XPS Group.
Its transfer value index increased to a month-end value of £141,000 on June, having peaked at just over £143,000 during the month. XPS says this increase was driven by a small decrease in gilt yields whilst future inflation expectations have remained flat.
However it points out that despite this modest increase the index remains around 10 per cent lower than in mid-2024. The graph below shows how significantly these DB transfer values have fallen in recent years.
Elsewhere, XPS Group’s latest scam flag index showed that 88 per cent of cases reviewed by its scam protection service in June raised at least one scam warning flag — a 3 per cent increase on the previous month.
The index average over the past six months is slightly lower than in the final six months of 2024, although the index has shown greater volatility during this period. XPS Group said the ‘overseas investment’ amber flag remains the most frequently identified scam warning sign.
The XPS Group’s transfer activity index also increased in June to an annualised rate of 25 members in every 1,000 transferring their benefits to alternative arrangements. This represents the highest rate the index has recorded since August 2023, continuing a trend over the past quarter of the Index remaining above 0.2 per cent. This suggests that, after a period of decline, pension transfers may be regaining some of their previous popularity.
XPS Group senior consultant Helen Cavanagh says: “Whilst the transfer value index remains at a relatively low level, transfer activity has been increasing over recent months, suggesting that this option is slightly regaining some of its previous popularity.
“Consequently, trustees should be ensuring that appropriate support is available to members who are considering this option.
The uptick in the scam flag index is disappointing, though it is reassuring to see that the index average has decreased over 2025. However, reviewing the transfer regulations is unlikely to be a high priority for the Government due to the volume of other significant pension industry reforms underway.”