The percentage of members transferring increased to an annualised rate of 41 members per 100,000, which is a 41 per cent rise over the previous month, according to the XPS Transfer Activity Index.
But transfer activity is still significantly below where it was in previous years even though this is the highest since January.
The Transfer Value Index for XPS Pension Group finished July at £210,000 after declining for the previous six months. The increase was brought on by a little decrease in gilt yields month-over-month. The XPS Transfer Value index rose for the first time in 2022, but it is still 22 per cent below the record high reached in December 2021.
Mark Barlow, Head of Member Options, XPS Pensions Group, said: “Many pension scheme members will be finding that their household finances are under pressure due to the ongoing cost-of-living crisis. Although this is only one month, we have seen a rise in the number of members transferring, possibly to meet their increased income needs. Whilst pension transfers can play a valuable role, it is crucial that members have appropriate support, including access to unbiased advice, to ensure that they make the right decision for them.”
XPS Pensions Group member engagement hub client lead Helen Cavanagh says: “Despite the small fall in scam warning flags last month, we have now entered a period where almost all transfer requests lead to MoneyHelper referrals. Whilst many will ultimately be legitimate transfers, we are always wary that new more sophisticated scam practices will continue to evolve. We welcome The Pension Regulator’s recent announcement of its plan to further help educate members and trustees about scams, to renew its effort to co-ordinate scam-fighting intelligence and to bring offenders to justice.”