XPS Group’s Transfer Value Index increased to a month-end value of £141,000, marking the first month-end increase in the Index since the start of 2025. The Index briefly peaked just over £143,000 during June, surpassing this level for the first time since the start of April 2025. The increase was driven by a small decrease in gilt yields whilst future inflation expectations have remained flat. However, the Index remains around 10% lower than in mid-2024.
|
XPS Group's latest Scam Flag Index revealed that 88% of cases reviewed by the XPS Scam Protection Service in June 2025 raised at least one scam warning flag, a 3% increase on the prior month. The Index average over the past six months is slightly lower than in the final six months of 2024, although the Index has shown greater volatility during this period. The ‘overseas investment’ amber flag remains the most frequently identified scam warning sign.
XPS Group’s Transfer Activity Index increased in June to an annualised rate of 25 members in every 1,000 transferring their benefits to alternative arrangements. This represents the highest rate the Index has recorded since August 2023, continuing a trend over the past quarter of the Index remaining above 0.2%. This suggests that, after a period of decline, pension transfers may be regaining some of their previous popularity.
Helen Cavanagh, Senior Consultant, XPS Group, said: “Whilst the Transfer Value Index remains at a relatively low level, transfer activity has been increasing over recent months, suggesting that this option is slightly regaining some of its previous popularity. Consequently, trustees should be ensuring that appropriate support is available to members who are considering this option. The uptick in the Scam Flag Index is disappointing, though it is reassuring to see that the Index average has decreased over 2025. However, reviewing the transfer regulations is unlikely to be a high priority for the Government due to the volume of other significant pension industry reforms underway.”
|
