Pensions - Articles - Xafinity Transfer Value index shows transfers increasing

 
 
 
 Paul Darlow, Head of Proposition Development, Xafinity comments: “Over the last few months the level of transfer values was generally driven by increases in gilt yields (which in isolation act to reduce the Xafinity TVI) and by increases in inflation expectations (which in isolation act to increase the Xafinity TVI).

 “February saw an interesting reversal in this trend – we saw both gilt yields and inflation expectations reduce over the month. Overall this change has been positive for transfer values. With several potentially significant political events coming up, we might expect some volatility over the next few months.”

 The Xafinity 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 Xafinity Transfer Value Index.