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DB pension transfer values rose in March, Xafinity data shows

12 April 2018

Pension transfer values as measured by the Xafinity Transfer Value Index rose during March 2018. 

The index was £232,000 at the end of February and £235,000 at the end of March.  Over the first quarter of 2018, transfer values initially dropped, before returning to levels seen at the beginning of the year.

The difference between the maximum and minimum readings of the Xafinity Transfer Value Index over March 2018 was £4,400 (or around 1.9%).

Commenting on the latest data, Sankar Mahalingham, Head of DB Growth, Xafinity Punter Southall, said: “The increase in transfer values over March 2018 was mainly due to a drop in gilt yields over the month. The Bank of England Monetary Policy Committee (MPC) kept the Official Bank Rate at 0.5% during the month but the market is anticipating gradual rises during 2018. Any delay in actual rises would likely mean an increase in transfer values if the delay is expected to be prolonged.”

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.