Pensions - Articles - Highest levels of pension transfers since July 2020


DB pension transfer activity increased over the course of June for the third month in a row, the latest edition of XPS Pension Group’s Transfer Watch has found. The Transfer Activity Index showed that an annualised rate of 75 members out of every 10,000 members are now transferring their pensions, the highest level seen since July 2020.

 The Scams Red Flag Index fell in June, but still remains at a very high level, with 55% of transfers showing at least one warning sign of a potential scam or the potential for poor member outcomes.

 There was a very small fall in the Transfer Value Index, reflecting a continued period of stability in the financial markets.

 XPS Pension Group’s Transfer Watch monitors how market developments have affected transfer values for a typical pension scheme member. It also monitors how many members are choosing to take a transfer from their DB pension scheme and, through its Red Flag Index, the incidence of scam red flags identified at the point of transfer.

 On 6 July, the Government published its response to the Work and Pensions Committee’s report on the first phase of its inquiry “Protecting pension savers – five years on from the pension freedoms”. In it, the Government rejected the committee’s recommendation that the upcoming Online Safety Bill should do more to tackle online advertising of fraudulent pension products.

 Mark Barlow, Head of Member Options, XPS Pensions Group commented: “We have seen fewer transfers and retirements over the past twelve months, so it’s no surprise that we’re now seeing an increase in activity as lockdown restrictions are eased. Whilst scam warning signs remain so high, and with no immediate prospect of laws combatting fraudulent online pensions adverts being strengthened, it’s as important as ever that trustees and employers take steps to support and protect their members.”

 
 Chart 1 – XPS Transfer Value and Transfer Activity Index
 

 Chart 2 – XPS Red Flag Index
 

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.