The number of pension transfers has risen to its highest level since August 2023, indicating that they may be regaining popularity.

XPS Group’s Transfer Activity Index increased in June to an annualised rate of 25 members in every 1,000 transfering their benefits to alternative arrangements.

The firm’s Transfer Value Index also increased, to a month-end value of £141,000, the first month-end increase the index has seen since the start of the year.

The Value Index briefly peaked just over £143,000 during June, driven by a small decrease in gilt yields whilst future inflation expectations have remained flat. However, the Index remains around 10% lower than in mid-2024.

The firm’s Scam Flag Index showed that 88% of cases reviewed by the XPS Scam Protection Service in June 2025 raised at least one scam warning flag, a 3% increase on the prior month. The Index average over the past six months is slightly lower than in the final six months of 2024, although the Index has shown greater volatility during this period.

The ‘overseas investment’ amber flag remains the most frequently identified scam warning sign.

Helen Cavanagh, senior consultant at XPS Group, said: “Whilst the Transfer Value Index remains at a relatively low level, transfer activity has been increasing over recent months, suggesting that this option is slightly regaining some of its previous popularity. Consequently, trustees should be ensuring that appropriate support is available to members who are considering this option.

“The uptick in the Scam Flag Index is disappointing, though it is reassuring to see that the Index average has decreased over 2025. However, reviewing the transfer regulations is unlikely to be a high priority for the Government due to the volume of other significant pension industry reforms underway.”

Transfer Watch over the past 12 months:

Source: XPS Group – All data is at the end of each month.