According to the newly released MetLife’s 2025 Pension Risk Transfer (PRT) Poll, a record 94% of US defined benefit (DB) pension plan sponsors with de-risking goals intend to fully divest their pension liabilities with 80% planning to do so within five years.
The company’s latest research shows market volatility is driving plan sponsors to de-risk, which, coupled with economic trends and stronger plan funding, is contributing to a positive future outlook for the U.S. pension risk transfer market.
Macroeconomic uncertainty is having a clear effect: 94% of plan sponsors report their pension plans are receiving significant attention from corporate management due to the financial impact of volatility on their balance sheets. Plan sponsors say market volatility is the top catalyst for PRT (45%), followed by interest rate changes (41%).
“We’re seeing a new era of strategic pension stewardship,” said Elizabeth Walsh, vice president and head of U.S. Pensions at MetLife.
“Plan sponsors are taking action— leveraging flexible deal structures and favorable market conditions to deliver long-term security for their participants.”
MetLife’s inaugural research in 2015 highlighted pension risk transfer as a niche solution, largely reserved for the largest plans and a handful of insurers, with annual transaction volumes under $14bn, according to LIMRA. Today, the market has grown dramatically with nearly $52bn in 2024 and PRT volumes are projected to reach $100bn by 2030. Split deals and reinsurance strategies are expanding capacity and diversifying risk. And, with over 20 active insurers—twice as many as a decade ago—competition is driving better pricing and more flexible deal structures.
“Today, plan sponsors are more knowledgeable and strategic about pension risk transfer solutions, a notable shift from 2015,” said Walsh.
“A decade ago, organizations were more cautious, mainly exploring financial impacts and available options.”
Over the past 10 years, plan sponsors have shifted from exploring risk transfer options to taking concrete steps toward readiness. Data cleansing has emerged as the top preparatory action, with 62% prioritizing the improvement of plan participant data quality—a critical foundation for efficient and accurate transactions. Nearly half, 48%, have increased plan contributions.
The Poll also reveals a dramatic shift in preferred risk transfer solutions. In 2015, only 46% of respondents said they will use an annuity buy-out on its own or in combination with a lump sum to achieve their PRT goals; today, that figure has soared to 78%. The average size of the liabilities surveyed sponsors plan to transfer is $608 million.
