Half of UK pension funds seek buy-out
About half of all UK defined benefit pension funds are now targeting a buy-out as their long-term objective, new research shows.
A survey of 100 DB pension scheme trustees by consultancy Hymans Robertson revealed the number of pension funds aiming for self-sufficiency has dropped markedly in the past four years, down to just 37% from 81%.
Now, the number of funds aiming for a buy-out has increased to 49% – up from just 15% four years ago.
The remaining 14% are targeting a form of consolidation, Hymans Robertson said.
The firm’s half-year risk transfer report found $45 billion of pension scheme risk was insured in the first six months of this year, and that 40% of FTSE100 companies that sponsor DB schemes have completed buy-ins, buy-outs or longevity swaps.
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