Comprehensive analysis of the buy-in market
Buy-in monitoring service - March 2021
18 Mar 2021
In this edition of our buy-in monitoring service, we share our usual pricing analysis as well as providing an insight into the latest buy-in activity.
This quarter's headlines include:
Pensioner buy-in pricing dips
Credit spreads continued to narrow back down which led to average pricing hardening slightly compared to the pricing seen at times over 2020. See our “Buy-in pricing” section for more details.
2021 set to begin trend of c£40bn+ volumes
Despite the pandemic, 2020 was a busy year for the bulk annuity market with c£30bn of transactions. We anticipate regular annual volumes of c£40bn+ p.a. are likely for this coming decade as schemes mature and funding levels improve. Some schemes which had put projects on hold due to COVID may be looking to re-engage with the market. More information is available in our 2021 risk transfer report.
Range of de-risking solutions
Different pension schemes will have different challenges to navigate and different risk preferences on their journey to buy-out. The market continues to develop a range of de-risking solutions to suit different pension schemes’ needs and allow a more refined de-risking route to buy-out. Trustees will benefit from being well informed and up to date on the latest market solutions and regulatory backdrop.
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See the bigger picture
Download our fifth annual risk transfer report, where we provide comprehensive analysis of the pensions bulk annuity market.
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