Pensions - Articles - Transfer values recover

 The Index at the end of January 2016 was around £209,000 which is more than £6,000 higher than just one month previously.

 This recovery, driven mainly by falls in Gilt yields, would have been stronger but for a decrease in expected future inflation. Over January 2016 long-dated Gilt yields fell by around 0.25% per annum whilst expectations of future inflation fell by less than 0.1% per annum. The difference between these two key metrics is the key driver of the Xafinity Transfer Value Index.

 Paul Darlow of Xafinity commented: “Whilst an increase of £6,000 appears significant, that increase only brings the Index back in line with where the Index was for most of 2015.”