Transfer values undergo little change over October

Written by Talya Misiri
13/11/17

Transfer values remained relatively stable over October, ending on £231,000, up £1,000 from the previous month, Xafinity has found.

According to the Xafinity Transfer Value Index, the difference between the maximum and minimum readings of transfer values over October was £5,000, around 2.3 per cent. Transfer values fluctuated between £229,000 and £234,000 over the month.

This in in contrast to a difference of £12,000, around five per cent, between the maximum and minimum reading of the Index over September 2017. The DB transfer value for the month fell by four per cent to £230,000.

Xafinity head of DB growth Sankar Mahalingham commented: “Transfer values stayed fairly stable during October 2017, compared to the volatility in transfer values that we have seen in previous months of 2017.

"At the beginning of November, the Bank of England raised the Official Bank Rate for the first time since July 2007, but this was anticipated by markets and was already reflected in the fall in the Index over September 2017 (and there has been little change to the Index in early November). The markets are anticipating another rise towards the end of 2018; any delay in a rise would mean an increase to transfer values.”

The Xafinity 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 Xafinity 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
Adam Cadle provides a summary of the big pensions stories to have hit the headlines this week
Most read stories...
World Markets (15 minute+ time delay)
FTSE
7,417.24
-1.78
S&P 500
2,597.08
-1.95
Nikkei 225
22,523.15
+106.67