Defined benefit (DB) pension transfer activity increased slightly in September, with an annualised rate of 15 members in every 1,000 transferring their benefits to alternative arrangements, XPS Pensions Group data has revealed.

According to XPS, whilst there was slightly more volatility in the Transfer Activity Index over this quarter, with the highest rate of transfers seen in 2024 during July, the index remained “relatively stable” over the year.

XPS Group’s Transfer Value Index, meanwhile, saw a marginal decrease from £158,000 at the end of August to £156,000 at the end of September.

The index demonstrated a "prolonged period" of stability, as XPS revealed that month-end values have fluctuated within a £5,000 range since the beginning of the year.

XPS said that the third quarter of 2024 was also relatively consistent with only minor fluctuations, falling slightly at the quarter end to be consistent with the value reported at the previous quarter end of June 2024.

Commenting on the findings, XPS Group senior consultant, Helen Cavanagh, said: "Although we saw a slight drop in the Transfer Value Index last month, it continues to fluctuate only marginally, as it has throughout 2024.

“This stability is attributed to both gilt yields and long-term inflationary expectations remaining fairly stable since the start of the year, resulting in consistently low transfer values. 

“Lower transfer values may be contributing to the lower volume of transfer activity which we have seen over 2024.”

Meanwhile, XPS Group’s Scam Flag Index found that 87 per cent of cases reviewed by its Scam Protection Service in September raised at least one scam warning flag.

This represented a fall of 1 per cent compared to the previous month and was the lowest rate the index has reported since February 2024.

Over the past quarter, the index has shown a gradual decline from a high of 92 per cent in June 2024.

However, Cavanagh noted that whilst there has been a slight reduction in the number of scam flags raised, that the index remained at a high level. 

“Nearly three years have passed since the introduction of the 2021 transfer regulations, but we have heard little from the new government on their plans to address the industry concerns raised in the 18-month review of the regulations,” she stated.

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