Transfer activity falls to lowest in over five years
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A Transfer Activity Index found that at an annualised rate, only 19 members per 100,000 have transferred out of their current scheme, marking the lowest activity since May 2018, when the index was launched.
The number is about half of the level measured by the index this time last year, according to XPS Pensions Group, which publishes the index.
"Transfer activity levels have declined dramatically over the past five years, and this trend may have been further compounded by more recent falling transfer values,” said Helen Cavanagh, client lead at XPS Pensions Group’s Member Engagement Hub.
“However, we are still seeing that most transfers are made as members approach their retirement and it is clear that transfers remain an important part of the retirement decision making process for many."
The consultancy’s Transfer Value Index remains stable, meanwhile, because of fewer changes in gilt yields and long-term inflation expectations over the past few months than in 2022, ending the month with a typical transfer value at £161,000.
Worryingly, nearly all pension transfer cases (93%) reviewed by XPS in July raised at least one scam warning flag, according to XPS’s Scam Flag Index.