Pensions - Articles - Over half of pensions will complete bulk annuity transaction


The Society of Pension Professionals (SPP) this week held an event for pension professionals to gain practical advice on preparing for Bulk Annuity transactions.

Over 200 attendees were asked what proportion of their schemes they expected to complete a bulk annuity transaction over the next 5 years.

 54% said that around half would do so and a further 15% said that more than three quarters of their schemes would do so.

 Around a third (31%) of participants said that only a minority of their schemes would do so.
 
 Attendees heard from representatives from Rothesay, Aviva, Linklaters and LCP as to what makes a scheme more attractive to the market, governance, legal and timing considerations, transaction volumes and about markets for smaller schemes.
 
 SPP President Steve Hitchiner, who chaired the event, said; “The number of pension professionals expecting at least half of their schemes to complete a bulk annuity transaction over the next 5 years demonstrates the importance of pension de-risking strategies.
 
 It will be interesting to see whether these predictions prove accurate over the next few years but, regardless, the desire of schemes and sponsors to transfer risk to insurers seems firmly established.”
   

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