Pensions - Articles - Improvements seen in bulk annuity pricing

 The highlights include:

 - 2017 has continued to see improvements in bulk annuity pricing for a wide range of transactions. In fact, for some schemes the cost of securing all benefits with an insurer has reduced by as much as 10% over the last 12 months.

 - Bridging the buy-out deficit could be closer than expected as many schemes, particularly those that had substantially hedged interest rate risk and benefitted from strong overseas equity returns have been able to reduce the gap. Buy-out pricing at its current levels offers an opportunity to reduce pension risk for a considerably better price than expected and therefore, if desired, bring nearer the settlement of the scheme liabilities.
  

 View Risk Settlement September 2017