Pension transfer values decreased slightly over June to £233,000 but remained stable, according to XPS Pensions Group.

In their latest Transfer Value Index, the firm said the index was at £234,000 at the end of May, while the difference for minimum and maximum readings over June was £4,400, or 1.9 per cent.

Furthermore transfer values have been stable over the first half of 2018, fluctuating by around £8,300, or 3.6 per cent, compared to £14,000 or 6 per cent, for the whole of 2017.

XPS Pensions Group head of defined benefit growth, Sankar Mahalingham, said: “We can see that although transfer values remain close to historic highs in 2018, there has been a notable reduction in volatility.

“Given the recent UK political upheaval and its potential impact on the approach to Brexit, coupled with the changing global political climate (for instance in relation to possible escalation of trade wars), it remains to be seen whether this low volatility in markets and transfer values will continue over the coming months.”

The index, which tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is entitled to a pension of £10,000 a year, saw transfer values closer to 240,000 in the same period last year.

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