DB transfer values rise amid volatility

New figures released today showed that defined benefit pension schemes transfer values increased last month. The statistical release, provided by Xafinity's Transfer Value Index showed a £241,000 rise during May. Transfer values increased by 1.7% over the month, from £237,000 to £241,000.The firm said that the values had fluctuated again, continuing the trend seen in April.Above: Table from XafinityThe variation over May 2017 was again over 3.5% (or £9,000), similar to that experienced in April, following a relative period of calm for transfer values over the first quarter of 2017.Sankar Mahalingham, director, Xafinity said: “In May 2017 we have seen a continuation in the volatility of transfer values experienced in April; this month it has been caused mainly by variation in gilt yields.“Depending on the outcome of the General Election, and with negotiations for Britain to exit the EU about to start in earnest, we expect the volatility will continue for some time yet. Members continue to investigate this option while transfer values remain at high levels.”Explaining the figures, the company stated: “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.”