Pensions - Articles - Transfer values fluctuate in January but end month unchanged


Pension transfer values as measured by the XPS Pensions Group Transfer Value Index fluctuated moderately during January 2019, but with no overall change over the month. The index ended January 2019 at £235,000, unchanged from the end of December 2018.

 The difference between maximum and minimum readings of the XPS Pensions Group Transfer Value Index over January 2019 was £6,800 (or around 2.9%).

 
 Sankar Mahalingham, Head of DB Growth, XPS Pensions Group comments: “Transfer values rose over the first half of January, suffered a sharp fall mid-month, before then increasing gradually towards the end of the month. The reason for the mid-month fall was due to lower inflation expectations, with reducing gilt yields towards the end of the month bringing the index back in line with the start of month position.

 “While there was some volatility observed in January, it is lower than that experienced in December 2018. It is possible that there will be more volatility in coming months as various UK and global political events continue to unfold.”

 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.
   

Back to Index


Similar News to this Story

LGPS Funds a valuation anyone
Graeme Muir from Barnett Waddingham looks at the current state of LGPS Fund valuations and what to expect.
Research reveals pension tax relief timebomb set to hit
New analysis published by mutual insurer Royal London has shown, for the first time, how many of today’s workers are at risk of breaching the £1.03m l
New snapshot of what you have done with pension freedom
To mark the upcoming anniversary of pension freedoms, Canada Life has commissioned research1 looking at the behaviours of people who have flexibly acc

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.