DB pension transfer values fall over September

Defined benefit pension transfer values fluctuated over September, falling slightly by the end of month to £230,000.

According to the XPS Pensions Group Transfer Value Index, the value at the end of August was £232,000, meaning the value fell by £2,000 over the month.

The difference between maximum and minimum readings of the Index over September 2018 was £6,200 (or around 1.7 per cent). At one point during September the index dropped to £227,000, the lowest value in over 12 months.

Commenting, XPS Pensions Group head of DB growth, Sankar Mahalingham, said: “We have now seen a 12 month period of relatively stable transfer values. The index at the end of September 2018 stands at the same value as it did at the end of September 2017, £230,000, and has fluctuated by only £9,900 (or around 3 per cent) during that time.

“As we approach the deadline for agreeing a deal for Britain leaving the European Union, speculation about the type of deal negotiated, or indeed the possibility of a no deal scenario may impact gilt yield and inflation expectations, thereby increasing the volatility in the index.”

The XPS Pensions Group Transfer Value 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 (increasing each year in line with inflation).

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.