XPS Transfer Watch shows values increase slightly in March but activity remains low
XPS’s Transfer Activity Index saw a marginal increase over March 2024, to an annualised rate of 19 in every 1,000 members transferring their benefits to alternative arrangements. The trend of low transfer volumes continued throughout Q1 2024, with the Transfer Activity Index being 50% lower than this time last year.
The firm said the decrease may be driven by members being deterred by lower transfer value quotes, particularly if they have previously received a much higher quotation.
XPS’s Transfer Value Index rose slightly during March 2024 to £160,000, leading to an overall decrease of ~2% over Q1 2024, primarily driven by increases in gilt yields. However, this did not offset the falls in preceding months. Although transfer values were relatively stable across Q1 2024, the March month-end value is significantly less than a year ago, when it stood at £175,000.
Helen Cavanagh, head of Member Options, XPS Pensions Group, said: “In early 2024 we saw transfer values experience their most stable quarter since 2022, but values still remain ~10% lower than a year ago. Lower transfer values could be driving the Transfer Activity Index to its lowest recorded level.”
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