Pension transfer values have fallen by 8% in Q2 2023, according to XPS Pensions Group.
There has been an overall downward trend in transfer values across the quarter largely due to rises in gilt yields over the period.
The firms transfer activity index fell over June to a record low annual rate of 25 members in every 1,000.
The average age of transferring members in Q2 2023 was 58, up from an average of 56 years old in 2019, highlighting that those transferring are doing so as part of a retirement decision.
Some 95% of cases reviewed by the XPS Scam Protection Service in June raised at least one scam warning flag, according to XPS’s Scam Flag Index.
This is the highest rate of 2023 so far.
Helen Cavanagh, client lead at XPS Pensions Group’s member engagement hub, said: “XPS welcomes the DWP’s commitment to consider changes to the transfer regulations. In particular, we would like to see any changes address the practical issues of the overseas investment flag. This accounts for 40% of all flags raised by XPS, and is the primary driver for our Scam Flag Index remaining over 90% since the legislation was introduced.”
Mark Barlow, head of member options at XPS Pensions Group, added: “With continued falls in transfer values seen this quarter, it’s unsurprising that fewer members are taking the decision to transfer their pension. However, we are still seeing members investigating transfers as part of their retirement planning, particularly since annuity rates have improved so substantially.”