Despite buyout pricing appearing to be attractive once again, are schemes really in a position to take advantage of this or will 2011 be another missed opportunity?
There have been a number of strong views expressed recently on the current state of the buyout market. LCP's latest buyout report suggests that pensioner buy-in prices are at their most attractive since 2008. They also say that the time is not too far away from when buying-out schemes in full could be standard accepted practice.
On the other hand, at last week's FT End Game conference, MetLife suggested that very few schemes would be in a position to buyout in the next 6-12 months due to lack of preparation. Pensions Week's editorial also concentrates on how 'best practice' is on the march for schemes looking to de-risk - and that schemes need to be careful not to be left behind. These comments raise interesting questions around the ability of pension schemes to take advantage of opportunities as they arise.
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