Defined benefit transfer activity has risen to its highest level in 11 months, according to XPS Pension Group.
The firm's transfer activity index saw an increase in July 2024, reaching an annualised rate of 23 members per 1,000 transferring their benefits to alternative arrangements.
According to XPS, this marks the highest activity rate since August 2023 and the first month in 2024 where the index has exceeded 0.2 per cent.
This increase in activity following a prolonged period of lower volumes may be attributed to greater stability in transfer values over recent months, following significant declines since 2022, XPS said.
In July, XPS’s transfer value index increased slightly to £158,000, largely due to a decline in gilt yields over the month, it said.
The index has remained at £160,000 or below for seven consecutive months, reflecting the ongoing stability of it, according to XPS.
Helen Cavanagh, senior consultant at XPS Group, said: "The trend of lower, but more stable, transfer values continued 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.”
Elsewhere, 90 per cent of cases reviewed by the XPS scam protection service raised at least one scam warning flag in July.
This represents a decrease compared to June but the index still remains above the average level over the previous year.
alina.khan@ft.com
