Pension transfer activity increased to an annualised rate of 23 member per 1,000 transferring their benefits to alternative arrangements in July 2024, according to XPS Group’s Transfer Activity Index.

This represented the highest rate of transfer activity since August 2023 and the first month in 2024 where the index exceeded 0.2 per cent.

XPS stated that the increase in activity, following a prolonged period of lower volumes, could be attributed to greater stability in transfer values over recent months after “significant” declines since 2022.

The group’s Scam Flag Index showed that 90 per cent of the transfer cases reviewed by XPS’s Scam Protection Service in July raised at least one scam warning flag.

While this was a 2 percentage point reduction from June, it was still above the average level over the previous year.

XPS’s Transfer Value Index showed a slight increase to £158,000 in July, which the group said was largely due to a decline in gilt yields over the month.

This slight reduction in gilt yields reflected the ongoing stability of the index, XPS stated, which has now remained at £160,000 or below for seven consecutive months.

Commenting on the figures, XPS Group senior consultant, Helen Cavanagh, said: "The trend of lower, but more stable, transfer values continue into another month in 2024.

“Although the Transfer Activity Index has risen slightly this month, it remains approximately 25 per cent lower than the average index value over 2023.

“It remains to be seen whether increased stability in transfer values is influencing transfer volumes.”

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