Average pension transfer value hits 6-year low; scam warnings hit record high

May’s month-end average pension transfer value was £217,000, down from £232,000 in April and the lowest since June 2016, XPS Pensions Group’s Transfer Value Index has indicated.

The fall of 7 per cent over May was, according to XPS, due to a further increase in gilt yields and a fall in long-term inflation expectations, despite the continued high inflation rates.

More than four in five (83 per cent) of the transfers reviewed raised one or more scam warning flags, according to the Scam Flag Index, the highest rate observed in the tracker’s history and an increase of roughly 30 per cent since the beginning of 2022.

It was also revealed that, after a six-month period of decline, the rate of members completing transfers rebounded slightly to an annualised rate of 37 members per 100,000, an increase on the 35 members per 100,000 recorded at the end of April.

XPS Pensions Group member engagement hub client lead, Helen Cavanaugh, commented: “We continue to see the rate of potential scam activity referrals tick up.

“The majority of transfers reviewed are now assessed against the new transfer value regulations, with the overseas investments flag registered in three quarters of cases where a flag was present.”

XPS Pensions Group head of member options, Mark Barlow, added: “It is interesting to see a small uptick in members completing a transfer during May, despite the continued slide in transfer values.

“This could be a response to the cost-of-living crisis, highlighting the importance of providing support to members to ensure they don’t make an uninformed decision or leave themselves susceptible to scammers.”

    Share Story:

Recent Stories


Are current roads into retirement delivering member value?
Laura Blows explores HSBC Master Trust’s recent report, Converting pension pots into incomes, with HSBC Retirement Services CEO, Alison Hatcher.

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

Pension portfolios – the role of asset-backed securities
Laura Blows is joined by Royal London Asset Management (RLAM) head of sterling credit research, Martin Foden, and its Senior Fund Manager, Shalin Shah to discuss the role of asset-backed securities (ABS) within pension fund portfolios
Incorporating ESG into fixed income
Laura Blows is joined by TCW head of fixed income ESG, Jamie Franco, to discuss incorporating environmental, social and governance (ESG) strategies into fixed income portfolios

Advertisement