There was in increase in pension transfer activity in the last month, with July’s figure rising to the highest level for almost a year, according to XPS’s transfer activity index.
For July this index recorded an annualised rate of 23 members per 1,000 transferring their DB benefits to alternative arrangements.
This marks the highest activity rate since August 2023 and the first month in 2024 where the index has exceeded 0.2 per cent. This increase in activity, following a prolonged period of lower volumes — and XPS says this may be attributed to greater stability in transfer values over recent months, following significant declines since 2022.
XPS also found that there continued to be numerous scam warnings flagged up on these transfers. Its Scam Protection Service found that 90 per cent of cases reviewed in July had at least one scam warning flag. XPS says this was slightly down on June figures – but this index remains above the average level over the previous year.
XPS also publishes a Transfer Value Index. This increase slightly in July, to £158,000, largely due to a decline in gilt yields over the month. It says this modest reduction in gilt yields reflects the ongoing stability of the index, which has now remained at £160,000 or below for seven consecutive months.
XPS Group senior consultant Helen Cavanagh says: “The trend of lower, but more stable, transfer values continue into another month in 2024. Although the Transfer Activity Index has risen slightly this month, it remains approximately 25 per cent lower than the average Index value over 2023. It remains to be seen whether increased stability in transfer values is influencing transfer volumes.”
