Transfer values increase back to May levels

Transfer values have regained the ground lost in June, increasing by 1.1 per cent in the month of July according to Xafinity’s Transfer Value Index.

The index tracks the transfer value that would be provided by a typical DB scheme to a member aged 64 who is currently entitled to a pension of £10,000 each year starting at age 65 which increases each year in line with inflation. Over the month of July 2015, transfer values increased slightly, from £204,200 as at 30 June 2015 to £207,700 as at 31 July 2015. This increase reverses out most of the drop seen in June, meaning that transfer values are back at broadly the same level they were in May.

Xafinity head of proposition development Paul Darlow says: “Transfer values have recovered somewhat after the gradual decrease seen since March. This means that the Xafinity Transfer Value Index is currently in line with the average reading of the Index over 2015. Most of the volatility in the Index this year has been caused by fluctuations in Gilt yields and expectations of future inflation – I expect volatility to continue in future in response to changes in wider economic and financial circumstances.”