Transfer Value Index The transfer value a typical DB pension could expect to attract fell below £150,000 in October. This marked the first time since last year’s mini budget that transfer values have dropped so low, according to the XPS Transfer Value Index.
On 19 October, the Index fell to £149,100, the first time is has dipped below £150,000 since the immediate aftermath of last year’s mini budget.
The Index rallied slightly to finish the month at £152,000, 3% lower than the end of September. This was lowest the month-end value that has been recorded since the Index was first published in 2018.
the provider said this decrease continues the downward trend of transfer values since June 2023.The primary driver for the further fall in transfer values is the continued increase in gilts yield paired with slightly lower long-term inflation expectations.
Commenting on the figures, Mark Barlow, Partner at XPS Pensions Group, said: “The combination of high gilt yields and lower long-term inflation expectations is driving down transfer values, making it a difficult time for anyone who wants to transfer out of their DB pension. Transferring could still be the right decision, particularly with attractive annuity rates available, but it’s crucial that pension scheme members are getting quality support and financial advice before making any decisions about how to access their pension.”
