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UK Pensions Market Set for £70bn De-risking Surge by 2025

1/29/2025

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Summary

Story summary

WTW forecasts £50bn in bulk annuity transactions and £20bn in longevity swaps for the UK pensions de-risking market by 2025.
Enhanced scheme funding and new insurers will enable more liability transfers.
The market will increasingly transition from buy-ins to buyouts, with innovations aimed at smaller schemes.
Regulatory oversight from the PRA is expected to intensify as the market expands.

History

Historical Context

The UK's pensions de-risking market is evolving, reminiscent of the 1980s when companies began shifting pension liabilities to insurers. This trend, driven by regulatory changes and financial pressures, mirrors past transitions in risk management, emphasizing the need for innovative solutions in an increasingly complex financial landscape.

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Story summary

WTW forecasts £50bn in bulk annuity transactions and £20bn in longevity swaps for the UK pensions de-risking market by 2025.
Enhanced scheme funding and new insurers will enable more liability transfers.
The market will increasingly transition from buy-ins to buyouts, with innovations aimed at smaller schemes.
Regulatory oversight from the PRA is expected to intensify as the market expands.

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