Pensions - Articles - Pension scam warning flags at highest level in nine months

 XPS’s Transfer Activity Index saw a marginal decrease over June 2024, to an annualised rate of 15 members in every 1,000 transferring their benefits to alternative arrangements. This is the seventh consecutive month the Index has remained below 20 members per 1,000, compared to just a single occurrence in the prior year. The second quarter of 2024 has seen the lowest volume of transfers since the Index was first published.

 XPS’s Transfer Value Index held steady in June 2024 at £156,000, marking the sixth consecutive month that the index has been at or below £160,000. The Index has shown remarkable stability this year, with the largest change in the last six months being a decrease of 3.4% from March to April. The second quarter of 2024 has been the most stable in three years, driven by lower volatility in gilt yields and long term inflationary expectations.

 Helen Cavanagh, Senior Consultant, XPS Group, said: "We have seen yet another quarter of the Transfer Value Index remaining stable, although average transfer values are about 5% lower when compared with the same period last year. This decline in transfer values may be contributing to the historically low transfer volumes, with the Transfer Activity Index being lower than ever before over 2024. With the new Government in place, we hope to see increased engagement from them on the transfer regulation changes that were discussed with the industry prior to the General Election, which could potentially lead to falls in the Scam Flag Index in future.”