In brief
LCP’s predictions for the UK pension risk transfer market in 2025
Pensions & benefits Pension risk transfer Endgame strategy and journey planning Strategic journey planning DB pensionsRead our pension risk transfer team's predictions for the buy-in, buy-out and longevity swap market in 2025.
Charlie Finch, Imogen Cothay and Ruth Ward, alongside LCP’s pension risk transfer team, have considered what might lie ahead for the pension risk transfer market in 2025.
In this report, they share their predictions for 2025 and discuss how these might impact schemes that are considering insurance through a buy-in or buy-out or a wider risk transfer option such as a superfund transfer.
LCP’s top predictions for the UK pension risk transfer market in 2025:
- Another bumper year with £40bn to £50bn of buy-ins for the third year running and over 300 transactions for the first time.
- There will be at least one new DB superfund and one new entrant insurer.
- We will see continued favourable buy-in pricing in 2025 as new entrants make their mark.
- There will be an increased focus on non-pricing factors when selecting insurers.
- There will be over a 33% increase in the number of schemes issuing individual member policies and winding up in 2025.
