Pensions - Articles - DB Transfer Values hit Index low in mid January

 The trend of increasing gilt yields towards the end 2024 continued into the start of 2025, which has the been the main driver behind the recent falls in transfer values. However, since mid-January, gilt yields have started to fall again, resulting in the January month-end position of £147,000 being slightly higher than that of the previous month end.

 Elsewhere, transfer volumes remain relatively low, which may be reflective of a continued period of lower transfer values. Over January 2025, XPS Group’s Transfer Activity Index saw a marginal decrease to an annualised rate of 15 members in every 1,000 transferring their benefits to alternative arrangements, a similar rate to that observed for most of 2024.

 88% of cases reviewed by the XPS Scam Protection Service in January 2025 raised at least one scam warning flag, according to XPS Group’s Scam Flag Index. This was an increase of 3% compared to the previous month, but overall the Index remained lower than 90% for the seventh month in a row.

 Helen Cavanagh, Senior Consultant, XPS Group, said: "Whilst the Transfer Value Index at the end of January was relatively stable compared with the position at the end of December, the movement between these dates was volatile, with the Index reaching a new low in mid-January. Volatility of gilt yields over the past few months shows that it is critical that members have access to high quality support and advice to ensure they are well-informed when making decisions about their pension.”