Defaulting to buyout could cost schemes a quarter of their value

Van Lanschot Kempen recommends scheme run-on as it launches de-risking alternative

Jasmine Urquhart
clock • 2 min read
Van Lanschot Kempen says a £1bn scheme could lose £250m by defaulting to an insurance buyout
Image:

Van Lanschot Kempen says a £1bn scheme could lose £250m by defaulting to an insurance buyout

Defined benefit (DB) schemes could lose up to a quarter of their value by defaulting to an insurance buyout, analysis from Van Lanschot Kempen has found.

Over the next decade, a £1bn DB scheme could lose up to £250m in value by exiting to an insurance buyout, including an estimated £50m in missed returns over the same period, according to the analys...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

Jasmine Urquhart
Author spotlight

Jasmine Urquhart

Senior Correspondent at Professional Pensions

More on Risk Reduction

A bird in the hand: The additional factors for trustees to consider around endgame planning

A bird in the hand: The additional factors for trustees to consider around endgame planning

Claire Altman says we need to ensure schemes have the information to make the best choice

Claire Altman
clock 28 November 2025 • 3 min read
BBC Pension Scheme completes £6bn longevity swap

BBC Pension Scheme completes £6bn longevity swap

Transaction with Zurich and MetLife is second step in scheme’s phased longevity hedging programme

Holly Roach
clock 20 November 2025 • 2 min read
Dolce pension scheme completes £9.3m buy-in with Just Group

Dolce pension scheme completes £9.3m buy-in with Just Group

Risk reduction transaction secures the benefits of 510 scheme members

Martin Richmond
clock 19 November 2025 • 2 min read
Trustpilot