Pension transfer activity in March dipped to its lowest level since September in 2022.

XPS Pensions Group’s Transfer Activity Index fell slightly during March, with an annualised rate of 38 members per 100,000 transferring out of the current scheme to an alternative arrangement.

The start of 2023 saw a slight increase in pension transfer activity, but the index has now fallen back to the volume of transfers seen in August and September last year.

However, transfer values increased slightly in March.

XPS’s Transfer Value Index increased by around 4% over March, finishing the month at £175,000. This is the same figure as seen at the end of January.

The consultancy’s Scam Protection Service saw the number of cases raising at least one scam warning flag fall slightly to 90%. This is the lowest number of cases since raising at least one flag May 2002.

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, shows 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 50,000 DB members leave their schemes each year.

XPS Pensions Group’s Scam Flag Index tracks the percentage of monthly transfers reviewed by the businesses’ scam protection service that are identified as having warning ‘flags’ which indicate that the member is at risk of being scammed. The flags monitored include both the DWP’s set list of amber and red warnings and further areas of concern identified and monitored by XPS’ Scam Protection Service. The service is provided to the trustees of approximately 350 occupational pension schemes.