Defined benefit (DB) transfer values reached their highest level since early November 2016 due to a fall in gilt yields and more bearish inflation expectations.
According to Xafinity's monthly transfer value index, the reversal of trends on inflation expectations and gilt yields drove values to hit £237,000 during February.
The index is calculated based on the value which would be offered to a member aged 64, with a £10,000 annual pension entitlement from age 65, increasing each year in line with inflation.
Xafinity head of proposition development Paul Darlow said: "February saw an interesting reversal in this trend - we saw both gilt yields and inflation expectations reduce over the month. Overall this change has been positive for transfer values. With several potentially significant political events coming up, we might expect some volatility over the next few months."
In comes as a survey by MetLife of independent financial advisers revealed that not only do members want to cash in on rising transfer values, but they also seek security for their money. Two of three advisers believe the guaranteed drawdown market would benefit from the ongoing Brexit process as savers look for solutions to help combat investment uncertainty, it added.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.
Regulators must act now to impose some "proper regulation" to stop another defined benefit (DB) transfer advice disaster, saysTim Sargisson.
Opportunities for defined benefit (DB) schemes to pursue investment approaches that help repair the UK’s economy cannot stand in the way of improving member outcomes, Aegon says.
More members transferred out of defined benefit (DB) pension schemes in October after September's record lows while values were surprisingly stable, according to XPS Pensions Group's Transfer Watch.
Joanna Smith says trustees will need to accurately identify if covenant issues are short-term affordability concerns, or the start of more material deterioration.