Small schemes face shut-out if pension buy-ins surge
As the use of bulk purchase annuity schemes increases, insurers will be able to pick and choose the deals that get done. Smaller transactions are at risk of falling by the wayside, while market players are working to speed up the execution of deals that do make the cut
Recent work by Legal & General (L&G) indicates that 67% of the largest defined benefit (DB) schemes are considering using bulk purchase annuity schemes in the next five years and recent deals show this to be an increasingly popular de-risking strategy. At the same time, some of the kinks in the market, including high rates of transaction failure and long lead times, are being tackled.
The market is becoming so popular, however, that real fears are emerging about a possible wave of deals for
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