Only around a third of pension schemes are expected to complete the transition from buy-in to buy-out within a three year period, according to research by the Society of Pension Professionals.
This survey was conducted at a recent event held by SPP and attended by almost 400 pension professionals.
Polling among these professionals indicated that route for buy-ins remains strong, but completing this journey will take time.
When asked about the percentage of schemes that would complete the transition from buy-in to buy-out within three years, a third said that over half of schemes would move to this endgame within this period. However, two thirds of respondents said that less than 50 per cent of schemes would complete this process within this three year timeframe.
The survey shows that half of the pension professionals (47 per cent) expect between 26 and 50 per cent of schemes to reach buyout within this three-year period.
The event was on navigating post-transaction challenges in the DB risk transfer markets.
Sanjay Gupta, professional trustee at BESTrustees, who chaired the event, says: “This industry polling highlights that completing the journey can be far from a speedy process.
“Trustees must be prepared for a complex post-transaction phase – from data cleansing and benefit specification to insurer engagement and governance sign-off.
“Careful planning, clear communication and early preparation are critical to ensuring schemes can move efficiently from buy-in to buy-out within a realistic timeframe.”
