2017 Pension transfer values remained high

Pension transfer values remained high during 2017, figures showed today. During December 2017, the Xafinity Transfer Value Index increased by 1.7%, continuing the relative stability seen over the last quarter of 2017.Sankar Mahalingham, head of DB Growth, Xafinity said: “Transfer values remained relatively calm over the final quarter of 2017 however, and finished the year at much the same level that we saw at the end of 2016.”Figures fluctuated throughout 2017 but ended the year at £236,000, a slight increase from 2016 figures which reached £234,000, which were a significant increase from the 2015 figure of at £203,000.There was a £17,000 (7%) difference between the maximum and minimum readings of the Xafinity Transfer Value Index.The Xafinity Transfer Value Index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 currently entitled to receive an annual pension of £10,000, increasing each year with inflation.He added: “In 2017, transfer values have remained at or around historic highs, and we have continued to see significantly more transfer values being taken than in previous years. “We have seen some volatility in transfer values, with changes in gilt yields being the main driver, a result of a number of issues such as the uncertainty caused by the General Election, the first rise in the Bank of England Official Bank Rate for over 10 years and commencement of Brexit negotiations.” Pension transfer values hit a record high in September 2016 and pension providers warned that growing transfer values could spur a growth in pension scams.

2017 Pension transfer values remained high

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