Pension transfer values rose by 2% over the first month of 2023, according to XPS Pensions Group.
The firm’s value index saw values end January at £171,000 ($205,000, €194,000) – a similar level to December 2022. Pension transfer values plunged by 36.6% over 2022 as investor concerns over UK debt drove government bond (gilt) yields higher.
The slight increase was primarily led by a “small fall in gilt yields and a slight rise in long term inflationary expectations during January”, the firm said.
XPS’s Transfer Activity Index fell slightly during January, showing an annualised rate of 39 members per 100,000 transferring out of the current scheme to an alternative arrangement. The rate is consistent with the index over most of 2022, aside from the large spike in activity in November.
Some 93% of cases reviewed by the XPS Scam Protection Service in January raised at least one scam warning flag, according to XPS’s Scam Flag Index. This is the third consecutive month the index has remained at this level and the eighth month in a row where it’s been above 90%.
Mark Barlow, head of member options at XPS Pensions Group, said: “Following the significant fall in transfer values over the past year, it’s perhaps unsurprising we are seeing more stability and fewer people transferring their pension.
“However, many schemes are continuing to brace for an influx of members wanting to transfer their pension to address the cost-of-living crisis and are implementing additional support and protection to ensure members make the right decision for their circumstances.”
