Transfer values dip again
10 May 2018
Pension transfer values as measured by the Xafinity Transfer Value Index fell during April 2018. The index was £235,000 at the end of March and £232,000 at the end of April.
The difference between maximum and minimum readings of the Xafinity Transfer Value Index over April 2018 was £6,700 (or around 2.9%).
Over the first quarter of 2018, transfer values initially dropped, before returning to levels seen at the beginning of the year. They were at £232,000 at the end of February.
Commenting on the change, Sankar Mahalingham, head of DB Growth, Xafinity Punter Southall said: “There was a fall in transfer values between the start and end of April, due mainly to an increase in gilt yields, with inflation remaining relatively stable. There was more volatility in transfer values during April than in recent months (at almost 3.0%); though this is still low compared to the volatility we saw during 2017, where in some months the index fluctuated by over 5%.”
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.
Professional Paraplanner’s publisher, Research in Finance (RiF), is a leading research company in the financial services sector. On occasion our readers...
This week sees the launch of The Paraplanner Club, a new initiative devised by Siân Davies Cole and Chloe Phillips, a mentoring...
Professional Paraplanner has teamed up with Brand Financial Training to answer your questions around the exams scheduled for 2021....