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Transfer values end 2017 16% higher than 2015

17 January 2018

Pension transfer values as measured by the Xafinity Transfer Value Index fluctuated around 7% from high to low during the year but ended 2017 slightly higher than 2016 figures.

The index ended the year at £236,000, little changed from the figure of £234,000 at the end of 2016.

However, these figures were relatively high compared to the index at the end of 2015, which was £203,000, so over 16% higher.

The difference between maximum and minimum readings of the Xafinity Transfer Value Index over 2017 was £17,000 (or around 7%).

During December 2017, the Xafinity Transfer Value Index increased by 1.7%, continuing the relative stability seen over the last quarter of 2017.

Commenting on the yearly figures, Sankar Mahalingham, head of DB Growth, Xafinity Punter Southall said: “In 2017, transfer values have remained at or around historic highs, and we have continued to see significantly more transfer values being taken than in previous years.

“We have seen some volatility in transfer values, with changes in gilt yields being the main driver, a result of a number of issues such as the uncertainty caused by the General Election, the first rise in the Bank of England Official Bank Rate for over 10 years and commencement of Brexit negotiations.

“Transfer values remained relatively calm over the final quarter of 2017 however, and finished the year at much the same level that we saw at the end of 2016.”

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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