Defined benefit transfer values increased by 2.6 per cent in November to reach £156,000, the largest increase since March following consistent falls over the year.
According to XPS Pensions, the primary driver of the increase was a fall in gilt yields, breaking the trend of consistent increases over the past six months.
According to the firm’s transfer value index, in mid-October transfer values fell to £149,100 but they bounced back slightly to finish the month at £152,000, 3 per cent lower than the end of September.
This was the lowest month-end value that had been recorded since the index was first published in 2018.
Elsewhere, the number of DB transfers saw a small decrease over November, to an annualised rate of 21 members in every 1,000 transferring their benefits.
This is the equal lowest value reported by the index but XPS said activity here has been very stable in recent months, with only small changes seen.
The firm said: “Whilst the Transfer Value Index has risen this month, values are significantly lower than 18 months ago, which may be resulting in fewer people electing to transfer.”
In terms of scams, 99 per cent of cases reviewed in November raised at least one scam warning flag, according to XPS’s scam flag index.
While this represents an increase of 6 per cent compared to October 2023, this remains slightly lower than the trend over the past year.
XPS said this increase can be attributed to a greater number of members continuing to purchase immediate annuities, compared to this time last year.
amy.austin@ft.com
