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Defined benefit transfer values stabilise on Xafinity Index

19 November 2017

Defined benefit transfer values remained stable during October after months of volatility, according to Xafinity.

Values fluctuated between £229,000 and £234,000. The difference between the maximum and minimum readings of the Xafinity Transfer Value Index was 2.3%.

Sankar Mahalingham, head of DB growth at Xafinity (pictured), said: “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. The markets are anticipating another rise towards the end of 2018; any delay in a rise would mean an increase to transfer values.”

The 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.

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