Consultants say bulk annuity pricing could go either way depending on final reforms
Aon, Hymans Robertson, LCP and Mercer assess the key risk reduction trends of 2021
Mercer’s forecast for the risk transfer market next year
The majority of sub-£250m schemes plan to achieve a buyout as their scheme’s endgame even if pricing opportunities are not necessarily in their favour, Mercer research finds.
Pension Insurance Corporation (PIC) concluded £5.6bn on bulk annuities in 2020 after recording just over £2.1bn in the second half of the year.
Last year proved so significant that it merits an evaluation of governance arrangements, according to four in five respondents to a poll.
The Northern Gas Networks Pension Scheme has agreed a £385m pensioner buy-in with Legal & General (L&G).
Pension scheme trustees and sponsors should only seek to transfer members’ benefits to a defined benefit (DB) consolidator if there is no “realistic prospect of buyout in the foreseeable future”, The Pensions Regulator (TPR) says.
Mercer has launched a defined benefit (DB) master trust in a bid to offer a “best-in-class solution” that recognises the shrinking universe.
This year might prove to be a blip in the growth of the bulk annuity market despite volumes trending towards £25bn, according to Mercer.