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    Time is your friend: the case for delaying bulk purchase annuity transactions

    Time is your friend

    13 March 2024 Solutions
    Many pension schemes are considering a buy-out or buy-in in the near term, but the landscape is changing rapidly and the options available may improve dramatically. There is a strong case for holding back on an irreversible transaction you could later regret.

    The landscape for pension schemes is changing rapidly – and an insurance transaction is an irreversible decision. The government has put forward proposals to encourage DB schemes to consider wider options, including the consultation now open about changes that could make run-on even more attractive and introduce a public consolidator.

    Thankfully, time is your friend. All else being equal, the pricing of an insurance buy-out relative to gilts can be expected to fall as a scheme’s membership matures over time, and a scheme’s surplus can be expected to increase over time.

    We are therefore encouraging our pension scheme clients to take the time to fully assess their options.

    Click here to read the full whitepaper.

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