Pensions group XPS has launched XPS Transfer Watch, a monitoring service to track pension transfers as the Pension Freedoms continue to transform the market.

XPS’ new Transfer Watch combines its widely reported transfer value index (TVI) - showing how markets affect the total payment members may get - with a new transfer activity index, a new gauge of member activity that tracks how many members are leaving schemes the company looks after.

XPS Transfer Watch will replace the firm’s widely reported TVI index and will be issued in the second week of each month.

Despite recent concerns about the quality of transfer advice and the number of transfers XPS says transfers remain a popular choice for pension savers and a significant number of pension scheme members continue to leave schemes to access new flexibilities.  XPS’s 2019 Survey of Member Outcomes found that employers and trustees are starting to take more actions to support their members.

The company says that XPS Transfer Watch aims to “inform understanding of the trends and behaviours of members accessing new Pension Freedoms.” It will provide a new monthly snapshot of the average value and number of pension transfers XPS administers.

Transfer values remain at a historically high level, says the firm. In April, pension transfer values as measured by the XPS Pensions Group Transfer Value Index, fluctuated slightly, with a small fall over the month. The index was £243,900 at the end of March, and £242,300 at the end of April.

In terms of transfer activity the numbers of transfers remained “significant.” Over the period of the new index typically 1% to 1.5% of eligible members (on an annualised basis) left the schemes administered by XPS each month, said XPS. If replicated across all UK defined benefit (DB) schemes this would equate to between 50,000 and 70,000 members leaving each year.

XPS says the transfer activity index suggests a steady decline in transfer activity since mid-2018 although this was likely to have been due to a slow down after a rush of transfers in 2018 due to greater member awareness and actions taken by regulators, employers and trustees to better support and protect members.

Mark Barlow of XPS Pensions Group said: “We are excited to launch our Transfer Watch today giving clear insights into activity.  This is a key part of our focus on helping members achieve good retirement outcomes.”