Transfer values continue to plummet in April - XPS

Fall of 5%

Julia Bahr
clock • 2 min read

The recent fall in defined benefit (DB) pension transfer values continued to accelerate in April, with the month-end value at £232,000 representing a drop of 5% compared to the end of March, according to pensions consultancy XPS.

This was caused primarily by a further rise in gilt yields and has offset increases in long-term inflation expectations, it said. The month-end average for XPS' transfer value index was £245,000 on 31 March - a fall of 2% compared to February. Overall, it was 9% lower then than the peak recorded for November last year, according to XPS. 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. A similar pattern was ...

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