The value of defined benefit transfers fell in January after two consecutive rises at the end of 2023, according to data from XPS Pensions Group.
The firm's transfer value index fell by 3.9 per cent during January to reach £158,000 with the primary driver being a fall in gilt yields at the start of 2024 and long term inflation remaining flat.
Meanwhile, the number of transfers increased slightly
XPS Pensions’ transfer activity index showed an annualised rate of 19 members in every 1,000 transferred their benefits to alternative arrangements, up from 18 the previous month.
This is the fifth consecutive month transfer activity remained at a very low level, according to XPS Pensions.
Additionally, 84 per cent of cases reviewed by the XPS Scam Protection Service in January raised at least one scam warning flag.
According to the XPS scam flag index this is a 6 per cent decreased compared to December 2023 and only the third time the index has fallen below 90 per cent in the past year.
XPS Pensions attributed the decrease to an increased number of annuities being purchased by members as a result of market conditions making them a favourable price.
alina.khan@ft.com
