Impact of Brexit on DB transfer values

ianthy

Hi


The transfer value on my DB deferred pension has increased from £750k to £900k in less than 12 months. I am reviewing my options regarding transferring to a SIPP.


What is the view regarding DB transfer values and the impact of Brexit. Are the DB transfer values likely to increase or decrease over the next 6 months?


Thanks for reading.

AnotherJoe

What is it about Brexit (which won't occur for at least two years) that makes people pick it out from all the other stuff going on?
What about the OPEC current negotiations on oil extraction limits?
Or Trumps potential massive input to infrastructure spending in the US?
Or Trumps lowering of US corporation tax rates which will lead to big rises in the NASDAQ
Or Trumps protectionist policies which may lead to falls in the US markets ?
Or Italian banks folding ?
Or Euro stability ?
Or Greece going bust? (Or threat of)

In short, Brexit is a side show which hasn't started yet, they are just talking about selling tickets for it and quite a few people are trying to have the show cancelled.

In the meantime the usual economic shenanigans ensue and no one knows what will happen re transfer values but anything that does transpire in the next six months , has nothing whatsoever to do with Brexit, and even if it did it would be swamped by all the above events.

dunstonh

Are the DB transfer values likely to increase or decrease over the next 6 months?

My crystal ball thinks we are near the peak as gilt yields have been creeping up and are now higher than pre-referendum. It is the low yields that have pushed transfer values up (mainly). So, a higher yield will see values fall unless other changes are made to assumptions.

Next change on interest rates could be up. Inflation is on the rise. So, the best time may have already passed.

However, any of the events mentioned by Anotherjoe or any event that nobody has predicted could occur and change all that. i.e. nobody knows.

ianthy

When I asked the co pensions adviser what was driving the increased transfer value the response was Gilts, low interest rates and the scheme is well funded. I am reading more and more financial articles/blogs/posts saying that DB transfer values may have peaked. I have now locked in the last and highest DB quote for 3 months and will keep watching the quotation figures.
Thanks for the advice all.