There is one simple answer to this – bond yields!
I will explain but first cast your eye over this;
Over the past few months it’s true that pension transfer value have been at an all time high. This means that Brits living overseas that have recently chosen to investigate and receive their current transfer values have had a very nice surprise.
As you can see from the above image; that has just changed as bond prices seem to have bottomed out and are creeping up.
This affects pension transfer values.
Simply put- the future sizes of pension pots required to generate the promised future pension payments has had to be inflated.
These pots have to be invested in very safe government bonds.
Bond yields fall, the computers that predict the future required values come to the inevitable conclusion that the size of the port must be larger.
This obviously gets adjusted back down as the yields increase.
The time to act is now!