Pension transfer activity continued its downward trajectory during July - with an annualised rate of only 19 members per 100,000 transferring out of their current scheme to an alternative arrangement, latest data from XPS Pensions Group shows.
The consultancy said this is the lowest level of activity seen since its transfer activity index was first published in May 2018, and was approximately half of the level measured by the index this time last year.
Despite this, XPS said its transfer value index continued to remain stable - finishing the month at £161,000. It said July had become the third consecutive month where it had seen little fluctuation in the index - something it attributed to fewer changes in gilt yields and long-term inflation expectations over the past few months, compared to more significant movements seen over 2022 and the start of 2023.
XPS Pensions Group member engagement hub client lead Helen Cavanagh said: "Transfer activity levels have declined dramatically over the past five years, and this trend may have been further compounded by more recent falling transfer values.
"However, we are still seeing that most transfers are made as members approach their retirement and it is clear that transfers remain an important part of the retirement decision making process for many."
Chart 1 - XPS transfer value index
Chart 2 - XPS transfer activity index
