April’s XPS Transfer Activity Index figures continue the trend of decline in transfer activity and was the fourth time the Index has fallen to a new record low over the past 12 months.

Transfer values fell by 3.4% during April to £155,000, their lowest level since October 2023.

XPS said the main driver of the fall was a rise in gilt yields, which was offset slightly by a marginal increase in long term inflation expectations.

Helen Cavanagh, head of member options at XPS Pensions Group, said: "Transfer values have fallen again during April as gilt yields have risen, following a fairly stable start to 2024. Another new low for the XPS Transfer Activity Index reflects a longer-term trend of falling transfer volumes, which continue to persist.”

The pension consultancy’s Scam Flag Index saw 88% of cases raising at least one warning flag in April. This was unchanged from March 2024, and marked a lower rate than average over the previous year.

Members continued to purchase annuities at an increased rate, which are at lower risk of being the target of scams given no investment decisions are being made.

The XPS Transfer Watch monitors how market developments have affected transfer values for an example member, as well as how many members are choosing to take a transfer value. XPS Pensions Group’s Transfer Value Index shows the estimated Cash Transfer Value of a 64-year-old member with a pension of £10,000 a year with typical inflation increases. The value changes over time with market movements. Mortality assumptions are reviewed periodically.

XPS Pensions Group’s Transfer Activity Index represent the annualised proportion of members that transfer out of pension schemes administered by XPS. If replicated across all private sector, funded, UK, DB schemes this indicates that approximately 20,000 DB members leave their schemes each year.

XPS Pensions Group’s Scam Flag Index tracks the percentage of monthly transfers reviewed by its scam protection service that are identified as having warning ‘flags’ which indicate that the member is at risk of being scammed. It does not mean they have actually been scammed.