XPS Transfer Watch – Transfer Values slip from recent highs as pension scam index falls for fourth month in a row

XPS Pension Group’s Transfer Value Index remained near its record high for most of September before falling in the last 10 days of the month to £251,000. This fall was due to a sharp increase in yields on government bonds.

The Transfer Activity Index remained stable, showing an annualised rate of 62 members out of every 10,000 transferred their pension in September, which was the same rate as in August.

September’s Scams Red Flag Index fell for the fourth consecutive month, with 46% of transfers showing at least one warning sign of a potential scam or poor member outcomes.

XPS Pension Group’s Transfer Watch monitors how market developments have affected transfer values for a typical pension scheme member. It also monitors how many members are choosing to take a transfer from their DB pension scheme and, through its Pension Scam Index, the incidence of scam flags identified at the point of transfer.

Mark Barlow, Partner, XPS Pensions Group commented: “While it is promising to see the level of pension scam flag cases continuing to fall, 46% is still a high number of warning signs  so potential scams continue to be a cause for concern for trustees and sponsors.”

Chart 1 – XPS Transfer Value and Transfer Activity Index

Chart 2 – XPS Scam Flag Index