Pension transfer activity in the UK hit a record low of an annualised rate of 14 members in every 1,000 transferring their benefits to alternative arrangements in August, data from XPS Group has revealed.

This the second time this year that activity has been the lowest since XPS started publishing the index, having also hit 14 members in every 1,000 in April, while also reaching the same low in 2018.

Aside from July 2024, transfer volumes have remained at consistently lower-than-average levels this year at less than 20 members in every 1,000 transferring their benefits to alternative arrangements.

XPS Group’s Scam Flag Index showed that 88 per cent of cases reviewed by its Scam Protection Service in August raised at least one scam warning flag.

This represents a slight fall from the 90 per cent of cases in July, but is in line with the average level of the index over the year to date.

Meanwhile, XPS Group’s Transfer Value Index fell slightly from £158,000 in July to £157,000 in August.

Throughout 2024, the transfer index has remained relatively stable, hovering between £155,000 and £160,000 in each month this year so far.

Commenting on the findings, XPS Group senior consultant, Helen Cavanagh, stated: "We have now witnessed significantly lower volatility in transfer values for over a year, with values over 2024 being particularly stable.

“However, transfer activity has returned to its lowest point since 2018, suggesting that this stable environment may not influence transfer volumes as much as the size of the transfer value itself.”

This article was originally published on our sister title, Pensions Age.

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