The Index has demonstrated a prolonged period of stability, with month-end values fluctuating within a £5,000 range since the beginning of the year. The third quarter of 2024 has been relatively consistent with only minor fluctuations, dipping slightly at the quarter end to be consistent with the value reported at the previous quarter end of June 2024.
XPS’s Transfer Activity Index has increased slightly over September 2024, reaching an annualised rate of 15 members in every 1,000 transferring their benefits to alternative arrangements. There has been slightly more volatility in the Index over this quarter, with the highest rate of transfers seen in 2024 during July. However, the Index has remained relatively stable over the year to date.
According to XPS Group’s latest Scam Flag Index, 87% of cases reviewed by the XPS Scam Protection Service in September 2024 raised at least one scam warning flag. This represents a small decrease of 1% compared to the previous month, and is the lowest rate the Index has reported since February 2024. Over the past quarter, the Index has shown a gradual decline from a high of 92% in June 2024.
Helen Cavanagh, Senior Consultant, XPS Group, said: "Although we saw a slight drop in the Transfer Value Index last month, it continues to fluctuate only marginally, as it has throughout 2024. This stability is attributed to both gilt yields and long-term inflationary expectations remaining fairly stable since the start of the year, resulting in consistently low transfer values. Lower transfer values may be contributing to the lower volume of transfer activity which we have seen over 2024. We’ve also observed a slight reduction in the number of Scam Flags raised; however, the Index remains at a high level. Nearly three years have passed since the introduction of the 2021 Transfer regulations, but we have heard little from the new Government on their plans to address the industry concerns raised in the 18 month review of the regulations.”
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