So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
Find whitepapers
By Venilia Amorim2021-02-11T13:56:00+00:00
Recent analysis by Hymans Robertson shows that £1trn (€1.13trn) of risk from defined benefit (DB) pension schemes is expected to have been insured by the end of 2031.
The analysis showed that since the pension risk transfer market took off in 2007, buy-ins/buy-outs (£180bn) and longevity swaps (£110bn) have already insured £300bn of risk from DB pension schemes.
Further analysis by the consultancy points to an additional £700bn of DB pension scheme risk being insured by the end of 2031, resulting in a total of £1trn by then.
Despite a global pandemic, the total value of risk transfer transactions for 2020 was around £30bn – the second biggest year for the bulk annuity market.