A record 78 per cent of pension transfers showed at least one warning sign of potential scam activity in April, according to XPS Pensions Group’s Scam Flag Index tracker.
This represents the fourth consecutive month that the rate of potential scam activity on pension transfers has risen and is an 8 percentage point increase on the 70 per cent recorded in March.
Since new pension transfer rules were introduced in late November 2021, the rate of reported potential scam activity has risen by 37 percentage points from 41 per cent.
The recent fall in the XPS Transfer Value Index has continued to “gather pace”, according to XPS, with the month-end value of £232,000 representing a 5 per cent decrease compared to the end of March.
XPS stated that the fall was primarily driven by a further rise in gilt yields and has offset increases in long-term inflation expectations.
A similar pattern was seen in the XPS Transfer Activity Index, with the number of members completing transfers falling to an annualised rate of 35 members out of every 10,000, down from 38 in March.
Commenting on the findings, XPs Pensions Group Member Engagement Hub client lead, Helen Cavanagh, said: “Most transfer cases are now being assessed against the flags introduced in the 2021 transfer value regulations, with the overseas investments amber flag triggered in a majority of these cases.
“Complex or unclear fees, or the member not being aware of the fees they are being charged, are the other most…
