Pensions - Articles - Transfer activity falls to lowest level in over six years

 This is the lowest level of activity seen since the index first began in May 2018, and less than half the level measured by the index this time last year. Whilst there is no single reason why transfer activity volumes have continued to fall, lower transfer volumes have coincided with falling transfer values, which may be impacting member decision making..

 XPS’s Transfer Value Index remained flat compared to last month, reflecting greater stability of gilt and long term inflation rates in early 2024.

 87% of cases reviewed by the XPS Scam Protection Service in February 2024 raised at least one scam warning flag, according to XPS’s Scam Flag Index. This represents an increase of 3% compared to January 2024, but remains below the yearly index. This fall was driven in part by an increase in retirees purchasing annuities, which raise fewer scam warning flags because they are not investment products.

 Mark Barlow, Head of Member Options, XPS Pensions Group, said: “Transfer values have remained flat this month, and we are seeing a continued period values being significantly lower than prior to the Gilts crisis of 2022. This may be driving the lower volumes of transfer activity. Whilst it is positive to see that scam warning flags remain below the yearly index average, it remains important that members are provided with the right support in their decision making process to remain vigilant”.