DB transfers fall to eight month low as scam activity rises - XPS

Dip after a period of recovery

clock • 1 min read

April’s activity in the defined benefit (DB) transfer market fell to the lowest level since September last year, dropping by almost a quarter, while the number of transfers showing ‘red flags’ for scams increased to a three-month high, according to pensions consultancy XPS Pensions Group.

The latest statistics show a rate of 55 in every 10,000 members transferring per year, down from March's high of 68 in every 10,000. The slump in activity comes after a period of recovery earlier in the year on the back of expectations of future inflation increasing the expected value of members' pensions. Meanwhile, the XPS Red Flag Index identified at least one warning sign of a potential scam or the potential for poor member outcomes in 59% of transfers processed in April, up from 52% in March. Mark Barlow, partner at XPS Pensions Group said that it was disappointing to an incre...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

How public sector pensions impact divorce proceedings

How public sector pensions impact divorce proceedings

'The ripple effects of the McCloud Remedy continue to be felt in divorce proceedings'

Vanessa Gardiner
clock 15 April 2025 • 5 min read
Pension freedoms and lessons from Down Under

Pension freedoms and lessons from Down Under

How the UK can build a more 'robust and supportive' system

Verona Kenny
clock 09 April 2025 • 4 min read
UK workers regret not learning about pensions sooner

UK workers regret not learning about pensions sooner

Over half admit to feeling out of their depth, research finds

Isabel Baxter
clock 08 April 2025 • 2 min read