Pension transfer activity has ticked up over the last month, latest data suggests, bucking an impression that the market was beginning to cool.
The latest XPS Transfer Activity Index has shown a slight increase in the number of transfers that the administration business processed during May compared to the month before.
The transfers processed imply a slightly higher proportion of eligible members cashed out, at 0.94 per cent in May compared to 0.87 per cent in April.
Transfer values were also boosted by a fall in government bond yields over the month, but ended May slightly down on their figure at the end of April.
An example member would have received £241,500, compared to £242,300 at the end of the previous month.
XPS Pensions Group senior consultant Mark Barlow says: “Transfer values continue to run near record highs and, with the current political uncertainty, it doesn’t seem likely that they’ll fall significantly in the near future.
“There’s been a slight increase in members transferring during May. The index seems to be settling at a figure of around 1 per cent of eligible members transferring each year but we will see whether the current high transfer values result in more members taking a transfer in the coming months.”