UK-based industry group the Society of Pension Professionals (SPP) held an event last week that educated pension professionals with regards to preparing for a bulk annuity transaction.
During the event, the SPP asked the audience – numbering more than 200 – what proportion of their schemes they expected to complete a bulk annuity transaction over the next five years.
Some 54% said that around half would do so and a further 15% said that more than three-quarters of their schemes would do so.
Around a third (31%) of participants said that only a minority of their schemes would do so.
“The number of pension professionals expecting at least half of their schemes to complete a bulk annuity transaction over the next five years demonstrates the importance of pension de-risking strategies,” said SPP President, Steve Hitchiner, who chaired the event.
“It will be interesting to see whether these predictions prove accurate over the next few years but, regardless, the desire of schemes and sponsors to transfer risk to insurers seems firmly established,” he added.
