The UK’s pension risk transfer market is poised for growth in 2026, with activity expected to surpass 2025 as larger schemes undertake more de-risking transactions, according to WTW’s annual De-risking report.
WTW forecasts that total risk transferred to insurers and reinsurers is likely to reach £70bn in 2026 – up approximately 15% from the already high volumes seen in 2025.
The bulk annuity market itself is projected to exceed £50bn, fuelled by both larger transaction sizes and persistently attractive pricing.
Longevity swaps of up to £20bn are also anticipated. Whilst longevity risk transfer volumes will be driven by large schemes, there is growing interest from schemes of all sizes to support run-on strategies or to lock down a key aspect of future bulk annuity pricing.
“The risk transfer market is entering 2026 with strong momentum,” said Gemma Millington, Senior Pensions Risk Transfer Director at WTW.
“Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits at compelling prices. We expect this window to remain open through 2026, but trustees will need to be prepared and strategic to take full advantage. In 2025, the UK risk transfer market passed £0.5trn in transactions since the market was founded. This is a significant milestone in the UK defined benefit pensions industry and we are incredibly proud to have led the advice in over 25% of deals by value.”
WTW’s report notes that the UK market’s competitiveness remains “exceptionally strong”. While additional scrutiny from the Prudential Regulation Authority’s assessment of funded reinsurance models may create pricing headwinds for some insurers, WTW anticipates only limited impact on overall market dynamics.
“Insurers have continued to evolve their asset-sourcing capabilities, in some cases through new global asset manager relationships, which is helping to maintain pricing strength despite potential regulatory shifts,” Millington added.
Beyond the headline bulk annuity growth, WTW predicts a notable rise in alternative risk transfer solutions, including an expansion of the UK’s superfund market. Two new entrants are forecast in 2026, along with a doubling in the number of completed superfund transactions to date.
The firm also anticipates at least one entirely new risk transfer solution emerging in the coming year, continuing the trend of innovation prompted by evolving client needs.
WTW expects insurers to expand services that help schemes progress efficiently from buy‑in to buy-out, including taking on more data cleansing responsibilities and offering solutions to accelerate GMP equalisation, but with insurer and scheme administrator resources stretched, and queues for buy-out transitions growing, streamlined insurer propositions will be a decisive factor for many trustees.
“As we look ahead, 2026 offers trustees a powerful combination of market depth, competitive pricing and expanded choice,” Millington said.
“But the scale of activity means that timing and readiness are more important than ever. Schemes that plan early and engage collaboratively with the market will be best placed to secure exceptional outcomes for their members.”