The number of defined benefit pension transfers in July surged to the highest level since August 2023.

There was an annualised rate of 23 members per 1,000 transferring their benefits to alternative arrangements in July, according to the XPS Transfer Activity Index.

XPS attributed the increase to greater stability in transfer values in recent moths after significant declines since 2022.

XPS Pensions Group’s Transfer Activity Index represents the annualised proportion of members that transfer out of pension schemes administered by XPS.

The consultancy’s Transfer Value Index increased slightly to £158,000, largely due to a decline in gilt yields. According to XPS, the reduction in gilt yields reflects the “ongoing stability” of the index which has remained below £160,000 for seven months.

XPS Pensions Group’s Transfer Value Index shows the estimated Cash Transfer Value of a 64-year-old member with a pension of £10,000 a year with typical inflation increases. The value changes over time with market movements. Mortality assumptions are reviewed periodically.

Helen Cavanagh, senior consultant XPS Group, said: "The trend of lower, but more stable, transfer values continue into another month in 2024. 

"Although the Transfer Activity Index has risen slightly this month, it remains approximately 25% lower than the average Index value over 2023. It remains to be seen whether increased stability in transfer values is influencing transfer volumes.”

The number of potential scam warnings decreased slightly from June. Nine in ten of cases reviewed by the XPS Scam Protection Service in July raised at least one scam warning flag. The Scam Flag Index flags up the risk of a scam but does not imply a scam attack has taken place.