In this pensions de-risking update we look at facts and figures for 2017 and the outlook for buy-ins and buy-outs.
I joined LCP in 2000 and provide pensions advice to both companies and pension plan trustees with particular focus on strategic advice and longevity de-risking.
I jointly set up LCP's award-winning buy-in, buy-out and longevity swap practice in 2006 and have since helped many clients to design and implement buy-ins and buy-outs to reduce longevity risk. Transactions range from £10m to over £3bn including some of the most innovative in the UK such as for the ICI and Philips pension funds.
Advising from a strategic level right down to execution requires a wide range of skills – funding, investment strategy and a deep understanding of the de-risking markets. I find nothing is more rewarding than helping clients achieve meaningful steps and delivering results that exceed their expectations.
What clients say about me
- "I want to thank you and your LCP colleagues for your excellent work in achieving this outcome. Your professional, calm and considered approach to managing the project and reporting to the Steering Group and the Board has been greatly appreciated."
- "Your project management has been impeccable, and there is simply no way we could have achieved anything like what we have without it."
What you have achieved for the scheme is really quite remarkable, and will, I hope, stand us in good stead in the years to come. And you've done it in record time, but with no drop in your very high and professional standards. Thank you so much.
In this blog, Charlie Finch discusses five key questions you should be asking to understand if you are further along your de-risking journey than you think.
Analysis by LCP shows that in 2017 there was £12.3bn of pension buy-ins and buy-outs (also known as bulk annuities) by UK pension plans. This makes 2017 the second busiest year ever, behind 2014 at £13.2bn.16 March 2018
News item: LCP acts as lead adviser to the Trustee of the Royal Mail Pension Plan regarding a £450m bulk annuity with Rothesay Life which insures the benefits payable by the Post Office Limited Section of the Royal Mail Pension Plan.28 February 2018
This press release highlights the main findings of our 2018 report on the buy-in, buy-out and longevity swap market. It reveals that one of five FTSE 100 defined benefit schemes is now estimated to be over 80% funded relative to the cost of buy-out with an insurer.2 January 2018
How I have helped our clients
In July 2017, the Trustee of the Royal Mail Pension Plan entered into a £450m full buy-in with Rothesay Life covering the benefits payable to members of the Post Office Limited Section. LCP acted as lead adviser to the Trustee.
Thorough preparation and planning enabled the RMTGB (now part of the Masonic Charitable Foundation) to remove its pension risk within three months following a change in the principal sponsor’s circumstances.
Our 2018 report on the buy-in, buy-out and longevity swap market comes at a time when pension de-risking is more exciting than ever.
Our annual report on the buy-in, buy-out and longevity swap market looks at how the market has developed over the past 10 years
Our eighth report on buy-ins, buy-outs and longevity swaps reviews market activity over 2015 and the outlook for supply and demand over 2016 and beyond.
Our seventh report on the buy-in, buy-out and longevity swap market in 2014 includes insights from our award winning work with a wide range of pension plans.
How I can help
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.Meet some of our experts
LCP LifeAnalytics is a unique tool that allows you to measure the longevity risk in your pension scheme.Meet some of our experts
We work closely with our clients to understand their pension scheme objectives and implement effective and creative strategies to achieve them.Meet some of our experts