Only one in ten companies over the next three years are expected to remove their pension scheme liabilities, suggesting an increase in providers has not boosted business within the bulk annuity market.
Research conducted by Aon Consulting suggests instead of a surge of buy-out predicted by some parts of the industry, the pension buy-out market is instead set to be a ‘slow-burner’, with the average buy-out time likely to be more than 12 years. The survey of 150 companies with defined benefit (DB) schemes reveals 40% expect to remove scheme liabilities over a period longer than 10 years, while many larger schemes could take even longer, with almost 20% expecting to take more than 20 years. In addition, the findings show 68% of schemes are simply not interested in buyout at the present ti...
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