An annualised rate of 50 members out of every 10,000 transferred their pensions in December according to the XPS Pensions Group’s transfer activity index — the lowest rate since XPS started tracking this activity four years ago.
Head of member options Mark Barlow said a “slump” in transfer activity was common over the festive period.

“But this is the lowest rate of transfers we have seen since we started the index in 2018,” he said. “Although it’s unlikely to be affecting activity significantly yet, it’s interesting that this fall comes immediately after the introduction of the new transfer regulations, which provided trustees with the power to block transfers.”

The transfer activity index represents the annualised proportion of members that transfer out of pension schemes administered by XPS. If replicated across all private sector, funded, UK, defined benefit (DB) schemes this indicates that approximately 50,000 DB members leave their schemes each year.

In November last year, Barlow said transfer activity has yet to recover to pre-pandemic levels, perhaps a result of members finding it more challenging to access financial advice.

The transfer value index also fell by 5% (over £12,000) in December to an average of £258,000, falling from a record high of £270,000 at the end of November on the previous month. The decrease was driven by a rebound in gilt yields over the course of December, XPS data suggested.

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