Defined benefit pension transfer values have hit another record low, amid continued market volatility, data from XPS Group shows.
The latest update from the group’s Transfer Value Index showed transfer values continued to decline over the course of March 2025, ending the month at a new record low of £142,000.
XPS Group said the index has remained below £150,000 throughout 2025, driven by a further increase in gilt yields, coupled with falling long-term inflation expectations.
However, despite the low figure, there was an increase in XPS Group’s Transfer Activity Index during March, with an annualised rate of 21 members in every 1,000 transferring their benefits to alternative arrangements. It is the first time the Index has surpassed an annualised rate of 20 members since July 2024 and reverses the downward trend that has been taking place over the past few months.
XPS Group said the uptick may indicate a growing confidence among members in choosing a pension transfer as a retirement planning option, despite the market uncertainty.
Helen Cavanagh, senior consultant at XPS Group, said: “Despite record-low transfer values, we saw an uptick in transfer activity in early 2025. Due to the ongoing uncertainty over tariffs and potential trade deals with the US, markets are likely to remain volatile late into this year.
“It is more important than ever that members fully understand their benefit entitlements and that they receive high quality independent financial advice when planning for their retirement, particularly if transferring is an option they are considering.”
Separately, XPS Group’s data showed a sharp decline in the number of scam warnings raised by transfers.
In March, 85% of cases reviewed by the XPS Scam Protection Service raised at least one scam warning flag, a decrease of 7% from the previous month, marking the largest single-month change since mid-2023.
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