Defined benefit (DB) pension transfer values hit a historic low of £137,000 in mid-April 2025, according to XPS Group's Value Index, marking the first time the index has dropped below £140,000 since its inception.

The position showed some recovery in the second half of the month, ending at £141,000, but this amount was still the lowest month-end figure for the second month in a row.

XPS Group credited the drop in the index to the continued volatility of gilt yields and falling long-term inflationary expectations.

Despite the fall in transfer values, the group’s Transfer Activity Index saw a marginal increase over April, to an annualised rate of 23 members in every 1,000 transferring their benefits to alternative arrangements.

However, XPS Group’s Scam Flag Index saw a slight decline, with 83 per cent of cases reviewed by the XPS Scam Protection Service raising at least one scam warning flag during April 2025.  

This is the index’s lowest figure since May 2022, when the impact of the 2021 Transfer Value Regulations began to take full effect.

XPS Group senior consultant, Helen Cavanagh, said: "Despite last month’s dip in transfer values – reflective of continued market volatility – the slight rise we saw in transfer activity suggests that members remain engaged and proactive in managing their retirement options.”

She also noted that it is positive to see that scam warning flags fell to the “lowest observed level” in nearly three years, suggesting progress in protecting members from pension scams.

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