Defined benefit (DB) pension transfer activity reached its highest level since July 2020, with an annualised rate of 87 members per 100,000 transferring pensions to another provider during the month of November, XPS Pensions Group has announced.

The group's Transfer Value Index also experienced a similar increase in November to £179,000, marking a two per cent increase from the record low recorded in October.

This increase in transfer values was attributed by XPS to a small fall in gilt yields during November.

The provider explained that, with financial markets stabilising, transfer values were also much less volatile in November, with only a 5 per cent difference between the highest and lowest values seen during the month, down from an 18 per cent difference in October.

It was additionally revealed that 93 per cent of cases reviewed by the XPS Scam Protection Service in November raised at least one scam warning flag, according to XPS’s Scam Flag Index.

Although slightly down compared to the previous month, the index continued to highlight that almost all cases reviewed raised flags, with overseas investment in the receiving scheme making up the majority of these.

XPS Pensions Group head of member options, Mark Barlow, commented: “We saw a significant spike in the number of members taking a transfer during November, with activity at levels not seen for over two years.

“This may be due to members looking to their pensions to help them to manage through the current cost-of-living-crisis.

"With transfer values still near record lows it’s important that members are receiving high quality financial advice before making decisions that could impact their retirement.

“As highlighted in our recent member outcomes survey, pension schemes can be a crucial source of support for members, helping them to make the right decision for their circumstances.”

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