DB transfer activity fell to the lowest level for over six years, with the number of transfers in February halving compared to the year before.
Latest data from XPS’s Transfer Activity Index gives an annualised rate of just 15 in every 1,000 members transferring benefits to alternative arrangements.
XPS says that while there is no single reason why transfer activity volumes have continued to fall, reduced transfer values will be impacting member decision making. However, looking at transfer activity on a month-by-month basis, XPS says this remained flat, reflecting greater stability of gilt and long-term inflation rates in early 2024.
XPS data also shows that 87 per cent of cases reviewed by its scam protection service raised at least one scam warning flag in February.
XPS says this is a 3 per cent increase on the month before but remains below the annual index. The overall reduction has been due in part to a rising number of retirees purchasing annuities.
XPS Pensions Group head of member options Mark Barlow says: “Transfer values have remained flat this month, and we are seeing a continued period values being significantly lower than prior to the gilts crisis of 2022. This may be driving the lower volumes of transfer activity.
“Whilst it is positive to see that scam warning flags remain below the yearly index average, it remains important that members are provided with the right support in their decision making process to remain vigilant”.