XPS Pensions Group’s latest Transfer Watch has found that DB transfers have spiked to a two-year high even as transfer values have barely recovered from record lows.
XPS Pensions Group’s Transfer Value Index showed an annualised rate of 87 members per 100,000 transferred their pension to another provider during November, marking the highest level since July 2020.
The Index stood at £179,000 at the end of the month, an increase of 2% on the previous month. The firm said the increase was largely as a result of a fall in gilt yields during November.
With financial markets stabilising, transfer values were much less volatile in November, with only a 5% difference between the highest and lowest levels during the month compared to an 18% difference in October.
Additionally, XPS Pensions Group said 93% of cases reviewed by its scam protection service last month raised at least one scam warning flag.
Mark Barlow, head of member options at XPS Pensions Group, said: “We saw a significant spike in the number of members taking a transfer during November, with activity at levels not seen for over two years. This may be due to members looking to their pensions to help them manage through the current cost of living crisis.
“With transfer values still near record lows, it’s important that members are receiving high quality advice before making decisions that could impact their retirement.”
