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...

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