Pension transfer values fell by £5,000 to £231,000 at the end of January, Xafinity Punter Southall has reported.

According to the Xafinity Transfer Value Index, values dropped from £236,000 at the end of December 2017 to £231,000 at the end of last month; the same figure recorded in October 2017.

The difference between minimum and maximum readings over January 2018 was £6,000, or around 2.4 per cent.

Xafinity Punter Southall head of DB growth Sankar Mahalingham commented: “We have seen a steady fall in transfer values over January 2018. Increases in gilt yields have been the main driver, with inflation remaining relatively stable.”

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.

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