UK - More than half of trustees are still keen to buy out their pension scheme liabilities regardless of current market volatility, MetLife research reveals.
It also showed 51% of those trustees likely to buyout thought the transaction would be complete within the next two years, and 20% in less than 12 months.
MetLife business development manager Emma Watkins said: "These findings demonstrate the continued appetite for buyouts despite current financial market conditions. We know trustees and employers will want to ensure they are making diligent decisions at all times, and particularly so during times of market volatility. Thus, the move to buyout will have been carefully considered over a period of time."
The survey found when considering a bulk annuity buyout, 72% of trustees relied most heavily on advice from scheme actuaries, followed by legal advisors and employee benefits consultants.
Trustees also cited the financial strength of an insurance company as being the most important attribute they looked for, followed by competitive pricing.
A vast majority of trustees (91%) felt prepared to make prudent assumptions with regards to the new scheme funding regime. However, longevity risk continued to be the main assumption that concerned those trustees, the company said.
Watkins added: "Those trustees that have been preparing through de-risking strategies will be the ones less affected and, therefore, the ones most likely to continue to proceed. Those that have not considered a buyout up until now will recognise the benefit of reducing risk, particularly having been affected so recently by market movements."
She added that trustees who could not afford a full buyout would now be looking to alternatives such as buy-ins.
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