The primary driver for falling transfer values is the recent increase in gilt yields, due in part to investor uncertainty around the announcement of increased borrowing made in the Chancellor’s Budget, which has only been slightly offset by the small increase in long-term inflation expectations.
XPS Group’s Transfer Activity Index has increased slightly over October 2024, reaching an annualised rate of 18 members in every 1,000 transferring their benefits to alternative arrangements. However, the level of transfer activity continues to be low.
According to XPS Group’s latest Scam Flag Index, 86% of cases reviewed by the XPS Scam Protection Service in October 2024 raised at least one scam warning flag. This represents a small decrease of 1% compared to the previous month.
Helen Cavanagh, Senior Consultant, XPS Group, said: "The Transfer Value Index has reached its lowest point since October 2023, which is also the second lowest month-end position since the Index was first published. In contrast, Transfer Activity saw a slight uptick, which may suggest that the volume of transfers is less sensitive to the actual sizes of the transfers compared to other factors.”
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