Transfer values climb 7% to 'eye-watering sums'
Xafinity has issued a scam warning to trustees after transfer values continued to swell over August.
The firm's transfer value index estimated the average defined benefit (DB) transfer value had hit £241,000 by 31 August, up £16,000 from 31 July. This represents a 7% increase over the month, and a 16% increase since the same date in 2015.
The calculation is made based on how much an example DB scheme would provide to a member aged 64, who would have a £10,000 annual pension at age 65. The estimation also builds in inflation.
Head of proposition development Paul Darlow said trustees need to be wary of any suspicious transfer requests.
He said: "An increase of 7% in just one month is extraordinary, and illustrates the eye-watering sums potentially now on offer to members of defined benefit schemes.
"I think there is a real risk that pension scammers will seek to exploit this by convincing unwary members to move their pension into bogus investments. We should all be on guard to help protect members."
The tracker's update comes one week after research found three quarters of advisers had seen an increase in the number of transfer requests since the introduction of the freedoms in April 2015.
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