Transfer values fall over April as gilts rise

Pension transfer values fell slightly over April 2018, from £235,000 to £232,000, according to the Xafinity Transfer Value Index.

The drop in values was mainly due to an increase in gilt yields, with the maximum and minimum difference over April being £6,700, around 2.9 per cent. Inflation remained relatively stable throughout the month.

This is in contrast to March, where transfer values increased from £232,000 to £235,000 due to a drop in gilt yields.

Xafinity Punter Southall head of defined benefit growth, Sankar Mahalingham, said: There was more volatility in transfer values during April than in recent months (at almost 3.0 per cent); though this is still low compared to the volatility we saw during 2017, where in some months the index fluctuated by over 5 per cent.”

The Xafinity index tracks the transfer value provided by an example DB scheme to a 64 year-old member entitled to a pension of £10,000 each year from age 65, increasing with inflation.

The FSCS said this month that it was going to raise its levy to £407m as DB transfer claims jump.

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