The proportion of members transferring their pension increased to an annualised rate of 41 members per 100,000 in July 2022, a 41 per cent month-on-month rise, XPS Pension Group has revealed.
According to the firm’s Transfer Activity Index, this is the highest rate since January 2022, but it remained “far below” the volume of transfer activity of recent years.
Meanwhile, XPS’s Scam Flag Index showed that 94 per cent of transfer cases reviewed by the XPS Scam Protection Service showed at least one scam warning sign.
This represents a slight fall from the 97 per cent recorded in June, but marks the second month in a row where the rate has been more than 9 in 10 cases.
The overseas investment amber flag remained as the most common scam warning identified.
Following six months of decline, XPS’s Transfer Value Index was up marginally at the end of July at £210,000, an increase of £17,000 from June, with the rise attributed to a small fall in gilt yields.
Although this was the first increase in 2022, the XPS Transfer Value Index remained 22 per cent below the record high of £270,000 seen in December 2021.
“Many pension scheme members will be finding that their household finances are under pressure due to the ongoing cost-of-living crisis,” commented XPS Pensions Group head of member options, Mark Barlow.
“Although this is only one month, we have seen a rise in the number of members transferring, possibly to meet their increased income needs.
“Whilst pension…
