Transfer values fall over April as gilts rise

Pension transfer values fell slightly over April 2018, from £235,000 to £232,000, according to the Xafinity Transfer Value Index.

The drop in values was mainly due to an increase in gilt yields, with the maximum and minimum difference over April being £6,700, around 2.9 per cent. Inflation remained relatively stable throughout the month.

This is in contrast to March, where transfer values increased from £232,000 to £235,000 due to a drop in gilt yields.

Xafinity Punter Southall head of defined benefit growth, Sankar Mahalingham, said: There was more volatility in transfer values during April than in recent months (at almost 3.0 per cent); though this is still low compared to the volatility we saw during 2017, where in some months the index fluctuated by over 5 per cent.”

The Xafinity index tracks the transfer value provided by an example DB scheme to a 64 year-old member entitled to a pension of £10,000 each year from age 65, increasing with inflation.

The FSCS said this month that it was going to raise its levy to £407m as DB transfer claims jump.

    Share Story:

Recent Stories

Conveyancing Transformation
Adam Cadle talks to ULS technology CEO Jesper With-Fogstrup about making home moving a pleasant experience


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.