The XPS Pension Group’s Transfer Value Index fell again in January to a month-end average of £253,000, which is 2% lower than it was at the end of December.
XPS Pension Group’s Transfer Value Index climbed to another high of £270,000 at the end of November alongside expected inflation increases, data released by the pension consultant shows.
XPS's Scams Red Flag Index fell for the fourth consecutive month, with 46% of transfers showing at least one warning sign of a potential scam or poor member outcomes, according to the pensions consultancy.
DB transfers fall to eight month low as scam activity rises - XPS
Dip after a period of recovery
Mark Barlow: With warning signs of poor member outcomes remaining so high, we welcome the FCA s decision to extend their thematic review with the aim of driving up standards of pensions advice.
Tom Higgins
April’s activity in the defined benefit (DB) transfer market fell to the lowest level since September last year, dropping by almost a quarter, while the number of transfers showing ‘red flags’ for scams increased to a three-month high, according to pensions consultancy XPS Pensions Group.
The latest statistics show a rate of 55 in every 10,000 members transferring per year, down from March s high of 68 in every 10,000.
Pension transfer values recover after February dip - XPS
Rising inflation
Helen Cavanagh: More than half of cases are still showing warning signs that could indicate a scam, or at the very least, the potential for poor member outcomes.
Defined benefit (DB) pension transfer values recovered by about a third last month after February’s sharp fall, according to figures from consultant XPS.
The firm s monthly transfer commentary said March s recovery was largely due to rising expectations of future inflation increasing the expected value of members pensions.
It said its Transfer Activity Index had remained stable and transfers that raised alarm bells - monitored through its Red Flag Index - showed a small decline to just over half of all transfers raising questions.