UK. Just 6% of pension transfers not flagged as scams
A staggering 94% of pension transfer cases reviewed by XPS Group’s Scam Protection Service were registered as having one or more scam warning signs in July 2022 – a small fall from 97% in June 2022.
The firm said this is the second month in a row where the rate has been in excess of 90% of cases, with the overseas investment amber flag being the most common warning identified.
However, pension transfer activity seems to be on the rise as the proportion of members switching rose to an annualised rate of 41 per 100,000 – a 41% increase from June 2022.
While this marks a rise in transfers, the rate is still “far below” the volume of activity of recent years, XPS said.
Despite a six-month long decline, XPS Pension Group’s Transfer Value Index slightly improved at the end of July at £210,000 ($248,000, €249,000). The firm said the small increase was due to a slight dip in gilt yields over the same month.
Although this is the first actual increase of 2022, the XPS Transfer Value Index remains 22% below the high recorded in December 2021.
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