Defined benefit transfer values remained stable over July, standing at £233,000, according to XPS Pensions Group.

The overall value remained the same as at the end of June, when the Transfer Value Index also stood at £233,000.

In the last month the difference between the maximum and minimum readings has been £3,200, around 1.4 per cent.

XPS Pensions Group head of DB growth, Sankar Mahalingham, said the stability might be in relation to the Official Bank Rate, which was raised from 0.5% to 0.75% on 2 August.

“The impact that this will have on longer-dated gilt yields remains to be seen, and it is these that affect transfer values rather than the Official Bank Rate. It is likely that the move from the Bank of England MPC was broadly in line with market expectations, in which case any impact on gilt yields may be muted,” she said.

The index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is currently entitled to a pension of £10,000 each year starting at age 65.

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