Skip to content
International Adviser
  • Contact
  • Login
  • Subscribe
  • Regions
    • United Kingdom
    • Middle East
    • Europe
    • Asia
    • Africa
    • North America
    • Latin America
  • Industry
    • Tax & Regulation
    • Products
    • Life
    • Health & Protection
    • People Moves
    • Companies
    • Offshore Bonds
    • Retirement
    • Technology
    • Platforms
  • Investment
    • Equities
    • Fixed Income
    • Alternatives
    • Multi Asset
    • Property
    • Macro Views
    • Structured Products
    • Emerging Markets
    • Commodities
  • IA 100
  • Best Practice
    • Best Practice News
    • Best Practice Awards
  • Media
    • Video
    • Podcast
  • My IA
    • Events
    • Directory
    • IA Tax Panel
    • IA Intermediary Panel
    • About IA

ANNOUNCEMENT: Read more financial articles on our partner site, click here to read more.

SIGN IN INTERNATIONAL ADVISER

Access full content on the International Adviser site, access your saved articles, control email preferences and amend your account details

[login-with-ajax]
Not Registered?

DB transfer values fall to lowest month-end level for 7 years

By Fiona Nicolson, 28 Jun 23

93% of cases raised at least one scam warning flag in May

Pension transfer values fell by nearly 7% in May, according to XPS Pension Group.

The firm’s Transfer Value Index saw values end May at £159,000 ($202,000, €185,000), the lowest month-end value since the index’s records began, in 2016.

The decrease was primarily led by “a steady rise in gilt yields over May, coupled with a slight fall in long-term inflation expectations.”

As well as the lowest month-end level in seven years, XPS reported that this was also the lowest level seen overall, excluding the “volatile fluctuations in valuation seen around the time of last year’s LDI crisis.”

XPS’s Transfer Activity Index increased during the month, showing an annualised rate of 55 members per 100,000 transferring out of the current scheme to an alternative arrangement. The firm said that this was a sharp increase compared to April and that it breaks the trend of falling activity over the previous few months.

Some 93% of cases reviewed by The XPS Scam Protection Service in May raised at least one scam warning flag, according to XPS’s Scam Flag Index. This shows a slight fall compared to April, but it has now been a year since the Index last fell below 90%.

Helen Cavanagh, client lead at XPS Pensions Group’s Member Engagement Hub, said: “While increasing interest rates reduce transfer values, they do present investment opportunities, which means a transfer could still be in a member’s interest. However, it’s important that members seek unbiased, quality financial advice to ensure they make a decision that’s right for their circumstances.”

Tags: DB pensions | Pension Transfers | XPS Pensions Group

Share this article
Follow by Email
Facebook
fb-share-icon
X (Twitter)
Post on X
LinkedIn
Share

Related Stories

  • Alternatives

    Canada Life AM cuts and caps multi asset charges

    Asia

    Capital Group survey points to implications around “the Great Wealth Transfer”

  • Best Practice

    UK FCA notes deficiencies in retirement income advice practice

    Companies

    Puma Investments appoints Jeremy Roberts MD


NEWSLETTER

Sign Up for International
Adviser Daily Newsletter

subscribe

  • View site map
  • Privacy Policy
  • Terms and Conditions
  • Contact

Published by Money Map Media – part of G&M Media Ltd Copyright (c) 2024.

International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.