Covid-19 leads to most volatile month for DB transfer values

Down 11% mid-March

Hannah Godfrey
clock • 1 min read

The coronavirus pandemic led to March being the most volatile month on record for defined benefit (DB) pension transfer values, according to XPS Pensions Group.

XPS's transfer value index (TVI) fell from £249,700 at the end of February to £242,600 at the end of March, and in the middle of the month, transfer values fell 11% to a low of £222,800 - a level not seen since July 2016. According to XPS, the dramatic movements were largely due to fluctuations in gilt yields as the Covid-19 outbreak took hold during March. 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. E...

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