The pension transfer space is showing signs of recovery, as XPS Pension Group’s Transfer Activity Index recorded levels not seen since July 2020.
The figures for November 2022 showed an annualised rate of 87 members per 100,000 were transferring pensions to another provider last month.
Values seem to be recovering as well after hitting a record low in October 2022, XPS found.
The index stood at £179,000 ($217,030, €204,441) in November, a 2% increase from the previous month. The rise in transfer values was largely attributed to a “small fall in gilt yields during November”.
As financial markets stabilised, transfer values were much less volatile last month, XPS added, with just a 5% difference between the highest and the lowest values recorded over the month, down from 18% in October 2022.
Additionally, 93% of cases reviewed by XPS Scam Protection Service in November raised at least one scam warning. Even though this marks a slight decrease from the October figures, the index continues to highlight that “almost all cases reviewed raised flags, with overseas investment in the receiving scheme making up the majority”.
Mark Barlow, head of member options at XPS Pensions Group, said: “We saw a significant spike in the number of members taking a transfer during November, with activity at levels not seen for over two years. This may be due to members looking to their pensions to help them to manage through the current cost-of-living-crisis.
“With transfer values still near record lows it’s important that members are receiving high quality financial advice before making decisions that could impact their retirement. As highlighted in our recent member outcomes survey, pension schemes can be a crucial source of support for members, helping them to make the right decision for their circumstances.”