DB transfer values undergo gradual rise in May

Written by Talya Misiri

Defined benefit transfer values fluctuated and rose to £234,000 at the end of May 2018, Xafinity Punter Southall has reported.

According to XPS Group’s Transfer Value Index, the overall transfer value rose by £2,000 during the month from £232,000 at the end of April 2018.

The difference between the maximum and minimum readings of the index over May was £5,700, or around 2.4 per cent.

At the same time last year, DB transfer values were £241,000.

XPS Pensions Group head of DB growth Sankar Mahalingham commented that the rise in transfer values over the month were mainly a result of falling gilt yields during the second half of the month and inflation remaining stable.

“Transfer values remain close to historic highs, but have not been very volatile, a trend that we have seen since the start of the final quarter of 2017,” he said.

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). Different schemes calculate transfer values in different ways. A given individual may therefore receive a transfer value from their scheme that is significantly different from that quoted by the XPS Pensions Group Transfer Value Index.

Related Articles

Cautious optimism in a challenging world
Matthew J. Bullock, Investment Director, Global Multi-Asset Strategies, Wellington Management, meets Francesca Fabrizi to discuss how multi-asset strategies can help investors

Latest News Headlines
Most read stories...
World Markets (15 minute+ time delay)