UK pension schemes have seen a growth in willingness to enter into a bulk annuity type transaction, according to research from Clear Path Analysis.
The research for Clear Path Analysis’ upcoming annual report, Pensions de-risking: longevity hedging and buying out, found that 31% of UK based pension schemes claim preparing for a longevity hedge, bulk buy-in or bulk buy-out of their member pension risks is the most significant challenge they face in 2010.
The research found that in 2010, just 15% of pension schemes stated preparation for a longevity hedge, bulk buy-in or bulk buy-out transaction was the first priority.
However, according to Clear Path Analysis, competition between providers keeping transaction prices attractive and corporate sponsors seek exit solutions from their funding liabilities, the industry is heading for wide-scale take-off.
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