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Report: Pension
de-risking 2019

Pensions & benefits

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Are we at the tipping point?

Our report this year finds that the insurance market is entering a pension scheme buy-out boom due to improved affordability, driven by stalling life expectancies, good asset performance and attractive insurer pricing. As the demand for buy-ins and buy-outs accelerates, the key question is whether the market is approaching a tipping point where pension plan demand outstrips available insurance capacity.

Our 12th annual report on the buy-in, buy-out and longevity swap market concludes that full transfers from FTSE100 defined benefit company pensions schemes to insurers through a full buy-out could soar from £5bn to £300bn in total over the next ten years as the pension buy-out market enters a new phase.

It will be increasingly important for those interested in de-risking to be ahead of the curve as the dynamics in the market change.

Download the report now to stay on top of the latest pension de-risking developments and opportunities.

What’s inside

  • How demand from pension schemes for de-risking will develop in the future
  • The four main potential constraints on insurer capacity
  • Current pricing opportunities for buy-outs and buy-ins
  • DB consolidators: a viable alternative to full buy-out?
  • Mortality: the latest developments
  • A Q&A with the Littlewoods Pensions Scheme explaining how the they engaged with the market to achieve a £880m buy-in
  • Case studies of how LCP helped:
    • The Marks & Spencer Pension Scheme to complete £1.4bn of buy-ins
    • The PA Consulting Pension Scheme complete a £855m full buy-out

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How we can help

We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.

We help sponsors of pension schemes understand and manage the costs and risks associated with supporting their current and legacy pension schemes as well as other employee benefits.

LCP LifeAnalytics is a unique tool that allows you to measure the longevity risk in your pension scheme.

LCP Sonar, our risk profiling tool, benchmarks your scheme against other pension schemes, covering covenant, funding and investment risks. You can quickly see how your scheme’s risk profile compares to others and think about the key risks for you.

Our intuitive, real-time pensions technology allows you to see the information you need when you need it, helping you to make decisions.

We help trustees achieve their strategic goals, with solution-led, appropriate advice.

We help companies manage and mitigate their pensions risks and costs.

We support trustees and employers through the complex process of winding up a scheme.