'Coronavirus fears drive DB transfer value rise in February'

Up 1.6% in February

Hannah Godfrey
clock • 1 min read

Defined benefit (DB) transfer values rose during February as a result of market turbulence caused by the coronavirus, according to XPS Pensions Group.

XPS Pension Group's transfer value index (TVI) rose from £245,800 at the end of January to £249,700 at the end of February, representing a 1.6% increase. XPS said the movement was driven by a 0.1% fall in gilt yields, with inflation expectations barely moving during the month. XPS's index tracks the transfer value that would be provided by a hypothetical 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. Elsewhere, the group's transfer watch, which monitors how market developments have aff...

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