Defined benefit (DB) pension transfer activity spiked in March, despite transfer values hitting a new record low amid the recent market volatility, finishing the month at £142,000, XPS Group's Transfer Value Index has revealed.

The index showed that the average DB transfer value figure has remained below £150,000 since the start of the year, with the lowest mid-month figure also recorded in March.

XPS said that the primary driver of this decline was a further increase in gilt yields, coupled with falling long term inflation expectations.

It also pointed out that whilst the latter part of the quarter saw increased volatility in equity markets due to the initial US tariff announcements, the longer-term impact on the wider financial markets is yet to be seen.

Despite the falling transfer values, the index revealed a large jump in DB transfer activity, with an annualised rate of 21 members in every 1,000 transferring their benefits to alternative arrangements.

This is the first time the index has surpassed an annualised rate of 20 members since July 2024, reversing the downward trend that has been observed over the past few months.

XPS suggested that this uptick in transfer activity may indicate a growing confidence among members in choosing a pension transfer as a retirement planning option, despite the current market uncertainty.

The proportion of pension scam red flags has also fallen, as 85 per cent of cases reviewed by the XPS Scam Protection Service raised at least one scam warning flag, marking a 7 per cent decrease from the previous month, and the largest single-month change since mid-2023.

XPS Group senior consultant, Helen Cavanagh, said: "Despite record-low transfer values, we saw an uptick in transfer activity in early 2025.

"Due to the ongoing uncertainty over tariffs and potential trade deals with the US, markets are likely to remain volatile late into this year.

"It is more important than ever that members fully understand their benefit entitlements and that they receive high quality independent financial advice when planning for their retirement, particularly if transferring is an option they are considering.”

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