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 ...

To continue reading this article...

Join Professional Adviser

  • 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.

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Majority of final salary schemes to be fully funded in three years

Majority of final salary schemes to be fully funded in three years

Positive movement in funding for clients with DB pensions

Holly Roach
clock 28 March 2023 • 1 min read
Watch on demand: Dealing with death and your future clients

Watch on demand: Dealing with death and your future clients

PA’s 14 March webinar with Quilter is available to watch now

Professional Adviser
clock 27 March 2023 • 1 min read
Royal Courts of Justice, London

Ark scheme members face 'punitive' charges as tax tribunal appeal fails

The decision could impact both the members and the schemes

Jonathan Stapleton
clock 27 March 2023 • 7 min read