From the end of September to the end of October 2017 transfer values (as measured by the Xafinity Transfer Value Index) have remained relatively stable, fluctuating between £229,000 and £234,000.
The difference between maximum and minimum readings of the Xafinity Transfer Value Index over October 2017 was just £5,000 (or around 2.3%).
Sankar Mahalingham, Head of DB Growth, Xafinity comments: “Transfer values stayed fairly stable during October 2017, compared to the volatility in transfer values that we have seen in previous months of 2017. At the beginning of November, the Bank of England raised the Official Bank Rate for the first time since July 2007, but this was anticipated by markets and was already reflected in the fall in the Index over September 2017 (and there has been little change to the Index in early November). The markets are anticipating another rise towards the end of 2018; any delay in a rise would mean an increase to transfer values.”
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.