Pensions - Articles - Scam signs recorded in two thirds of transfer cases

 However, transfer activity continues to decrease, with another record low number of members transferring. The XPS Transfer Activity Index fell to an annualised rate of just 40 members out of every 10,000 transferring their pensions across the month, down from 47 in January.

 We have also seen the Transfer Value Index falling for the third consecutive month, registering a month-end average of £249,000, down 8% from its peak in November 2021. The yield on gilts continued to tick up during the month, leading to a decrease in transfer values despite the rise in inflation expectations.

 Helen Cavanagh, Client Lead, Member Engagement Hub, XPS Pensions Group, said: “The new flags introduced last year by the Department of Work and Pension’s updated transfer regulations have driven a spike in transfer cases showing warning signs of pension scams. We expect this trend to continue over the coming weeks and months, which will put increased pressure on the Government’s MoneyHelper service to provide guidance to all these members.”

 “Mark Barlow, Head of Member Options, XPS Pensions Group, added: “Whilst the recent slump in transfer activity shows no sign of abating, our indicative transfer value index has also recently been in decline. We expect that in the shorter term, markets are likely to endure another period of volatility given the current global conflict, which could also lead to an increased risk of wider scam activity”

 Charts 1 and 2 - XPS Transfer Value Index and XPS Transfer Activity Index