Pensions - Articles - Increased inflation outlook push transfers to record levels

 Transfer values (as measured by the Xafinity Transfer Value Index) ended September marginally higher, reaching a new record high.

 As at 30 September 2016 the Index stood at £243,000, an increase of £2,000 over the month.
 
 
 
 Paul Darlow of Xafinity commented: “We saw long-dated nominal Gilt yields increase slightly over September which, all other things being equal, would have reduced transfer values. However the devaluation of Sterling observed since the Brexit vote is starting to lead to expectations of higher future inflation. Higher future inflation means that pensions will typically increase faster, meaning they are more valuable. Transfer values have therefore edged up marginally over the month.”