The market events of 2020 could lead to a “fresh wave” of benefit reviews by UK companies and subsequent pension schemes closures, Aon says.
The Aon Retirement Plan has completed a £510m pensioner buy-in with Scottish Widows, insuring members in the Aon Bain Hogg Pension Scheme section.
The BBC Pension Scheme has completed a £3bn longevity swap deal with Zurich and Canada Life Reinsurance, covering the risk of pensioner and dependent members.
Aon has urged the pensions industry to avoid over-reacting to the impact of Covid-19, as it predicts another huge year for the UK risk settlement industry in 2021.
The National Grid UK Pension Scheme has completed an £800m buy-in with Rothesay, its second bulk annuity transaction with the insurer.
The winners of the Professional Pensions Investment Awards 2020 have been announced.
Pensions schemes with sponsors facing severe economic difficulties due to Covid-19 must prepare for the lifting of temporary protections from corporate insolvency at the end of the year, Aon says.
Stopping or reducing pensions contributions will begin to affect savers’ retirement outcomes if the habit is sustained too long amid the ongoing Covid-19 pandemic, Aon says.
This year has been one of the most turbulent periods for many pension scheme trustees. Those best able to navigate their way through it, have had strong governance in place, with their decision-making guided by a focus on achieving their long-term strategy. In the current market this is often easier said than done.