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Transfer values rise during May after April dip

12 June 2018

Pension transfer values as measured by the XPS Pensions Group (formally Xafinity) Transfer Value Index fluctuated during May 2018, with an overall rise during the month. 

The index was £232,000 at the end of April and £234,000 at the end of May.

The difference between maximum and minimum readings of the XPS Pensions Group Transfer Value Index over May 2018 was £5,700 (or around 2.4%).

The difference between the maximum and minimum readings over April 2018 was £6,700 (or around 2.9%).

Commenting on the figures, Sankar Mahalingham, head of DB Growth, XPS Pensions Group (pictured) said: “There was a rise in transfer values between the start and end of May, due mainly to a fall in gilt yields during the second half of the month, with inflation remaining relatively stable. Transfer values remain close to historic highs, but have not been very volatile, a trend that we have seen since the start of the final quarter of 2017.”

The XPS Pensions Group 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 XPS Pensions Group Transfer Value Index.