As defined benefit (DB) pension schemes' funding levels improve, the race to be ‘market-read' for buyouts is heating up.
According to research from Professional Pensions and Pensions Insurance Corporation (PIC), 37% of DB schemes are now fully funded or operating with a surplus, and 23% have funding levels between 95% and 100%. As a result, 62% of these schemes are actively targeting a buyout over the next 12-24 months alone, marking a substantial shift towards schemes wanting to secure their buyout position.
Mitul Magudia, chief origination officer at PIC, anticipates a busy market stating that whilst five years ago, a small percentage of schemes were fully funded on a buyout basis; now, around 30% are fully funded, with annual transaction volumes expected to reach up to £100bn.
To read the full report, and learn more about the issues challenging pension schemes in 2024, click below
*DATA PROTECTION STATEMENT: Your privacy policy – Please read carefully.
We set out below how and the basis under which we, Incisive Media*, will communicate with you. In our Privacy Policy we explain how we may use your data. For subscriptions, events, sponsored content and resources, we will use the lawful basis of 'legitimate interests' and we will use the contact details supplied to us to market to you regarding your trial or subscription, reader research, events and other related products. You will always be offered the option to change your contact preferences. Where you request a whitepaper or content published by one of our third party partners or attend a sponsored event which Incisive Media hosts, we will identify the third party or sponsors to you at the time and then pass on your contact details to them. They will contact you directly and their use of your data will be governed by their own privacy policy. Events may attract additional sponsors after bookings have opened and after the date you have signed up to attend, but we will identify all sponsors to you by email before the event.
