Defined benefit (DB) transfer values are back on the rise following a calm summer, according to the latest Xafinity transfer value index (TVI).
The value of Xafinity's hypothetical pension rose steadily over the month to a 3% gain, increasing from £230,000 at the beginning of August to £237,000 by the end of the month. The difference between maximum and minimum value readings throughout the month was £9,000 - or about 3.6%. Xafinity's index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is entitled to a pension of £10,000 each year, starting at age 65. It increases each year in line with inflation. The firm credited reductions in gilt yields as being the main driver behind ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes