Displaying items by tag: transfer values

A document, released under freedom of information laws, has shown The Pensions Regulator has called on pension schemes to cut transfer values.

Selectapension is set to launch a new tool called APTA with a Transfer Value Comparator next month.

The latest figures on pension transfer values, released this morning, showed a fall last month.

The Xafinity Transfer Value Index fell steadily from £236,000 at the end of December to £231,000 at the end of January.

Sankar Mahalingham, head of DB growth at Xafinity Punter Southall, said: “Increases in gilt yields have been the main driver, with inflation remaining relatively stable.”

Graph below courtesy of Xafinity


Screen Shot 2018 02 12 at 09.38.10

The difference between maximum and minimum readings of the index over January 2018 was £6,000 or around 2.4%, Xafinity said in a statement.

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.

Pension transfer value from the end of September to the end of October (as measured by the Xafinity Transfer Value Index) have remained relatively stable, fluctuating between £229,000 and £234,000, the company’s data shows.