During June 2017 transfer values (as measured by Xafinity’s Transfer Value Index) decreased by just under 4% over the month, falling to £232,000 at the end of June. Xafinity, a specialist Sipp and pension administration provider.
The company said the period of volatility over the second quarter of 2017 shows the difference between maximum and minimum readings of the Xafinity Transfer Value Index over Q2 2017 being £13,000 (or around 5.2%).
Sankar Mahalingham, head of DB Growth, Xafinity, said: “In June 2017 we have seen a continuation of the volatility of transfer values that we saw in April and May, with changes in gilt yields being the main driver.
“The volatility we have seen over the second quarter of 2017 is a result of a number of issues such as the uncertainty caused by the General Election and commencement of Brexit negotiations. These are unprecedented times, it remains to be seen whether we will enter a period of relative calm again over the summer months, or whether (as is perhaps more likely) this volatility will continue into the foreseeable future.”
The Xafinity Transfer Value Index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is currently entitled to a pension of £10,000 each year starting at age 65 (increasing each year in line with inflation). Different schemes calculate transfer values in different ways.
The Xafinity Group is a UK specialist in pensions actuarial, consulting and administration, providing a wide range of advisory and compliance services to over 550 pension scheme clients.