The XPS Group’s Transfer Activity Index is showing a rise to its highest level in 11 months.
The Index saw an increase in July 2024, reaching an annualised rate of 23 members per 1,000 transferring their benefits to alternative arrangements. This marks the highest activity rate since August 2023 and the first month in 2024 where the Index has exceeded 0.2%. XPS said this increase in activity, following a prolonged period of lower volumes, may be attributed to greater stability in transfer values over recent months, following significant declines since 2022.
90% of cases reviewed by the XPS Scam Protection Service in July raised at least one scam warning flag, according to XPS’s Scam Flag Index. Although this represents a decrease compared to June, the Index remains above the average level over the previous year.
In July, XPS’s Transfer Value Index increased slightly to £158,000, largely due to a decline in gilt yields over the month. This modest reduction in gilt yields reflects the ongoing stability of the index, which has now remained at £160,000 or below for seven consecutive months.
Helen Cavanagh, senior consultant, XPS Group, said: “The trend of lower, but more stable, transfer values continue into another month in 2024. Although the Transfer Activity Index has risen slightly this month, it remains approximately 25% lower than the average Index value over 2023. It remains to be seen whether increased stability in transfer values is influencing transfer volumes.”
