Investment - Articles - Transfer values drop by 2.2%, say actuaries at Xafinity

 Over this same two month period the maximum reading of the Xafinity Transfer Value Index was £213,000 compared with a minimum value of £205,400. This means that there is a £7,600 (or 3.6%) difference between the maximum and minimum transfer value over that two month period.
  

 

 Paul Darlow, Head of Proposition Development at Xafinity, comments

 “The variation in the Xafinity Transfer Value index illustrates the potential volatility in a given member’s transfer value. Increases in Gilt yields over recent weeks have acted to reduce the value placed on pension liabilities, and therefore reduce typical transfer values. Gilt yields, together with inflation expectations, are two of the main contributors to the volatility in transfer values. Given the recent increase in the number of members requesting transfer quotations, it is increasingly important for Trustees and sponsoring employers to understand the potential impact of transfer values on the financial position of their pension scheme.”