WTW predicts that the UK pension risk transfer market will reach £70bn in 2026, an increase of around 15 per cent on 2025 volumes.
According to its annual De-risking report, WTW expects bulk annuities, longevity swaps and alternative risk transfer solutions to record higher volumes, supported by pricing conditions, competition and product development.
The bulk annuity market is projected to exceed £50bn, driven by larger transaction sizes. Longevity swap volumes could reach £20bn, led by large schemes, with growing interest from smaller schemes managing run-on strategies or future pricing risks.
WTW notes that competition in the UK market remains strong. The Prudential Regulation Authority’s review of funded reinsurance may affect pricing for some insurers, but the firm expects limited impact on overall market activity.
Meanwhile, alternative risk transfer solutions are expected to expand. The UK superfund market is forecast to see two new entrants in 2026, alongside a doubling of completed transactions and the emergence of at least one new risk transfer solution.
The report highlights that several acquisitions of UK insurers by overseas investors are expected to be completed in the first half of 2026, which are not expected to affect market activity, though trustees are advised to carry out due diligence and consider short-term operational impacts.
The report further notes increased trustee focus on cyber resilience, expectations that insurers will expand buy-in to buyout support and capacity constraints that are likely to make streamlined insurer propositions more important in transaction selection.
WTW senior pensions risk transfer director Gemma Millington says: “The risk transfer market is entering 2026 with strong momentum. Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits at compelling prices. We expect this window to remain open through 2026, but trustees will need to be prepared and strategic to take full advantage.
“In 2025, the UK risk transfer market passed £0.5 trillion in transactions since the market was founded. This is a significant milestone in the UK defined benefit pensions industry and we are incredibly proud to have led the advice in over 25% of deals by value.”
Millington adds: “Insurers have continued to evolve their asset-sourcing capabilities, in some cases through new global asset manager relationships, which is helping to maintain pricing strength despite potential regulatory shifts.
“Cyber security has become an important measure of member protection, not just an operational concern. Trustees are rightly demanding evidence of strong controls and clear response frameworks. Insurers who can demonstrate excellence in this area will stand out in 2026.
“As we look ahead, 2026 offers trustees a powerful combination of market depth, competitive pricing and expanded choice. But the scale of activity means that timing and readiness are more important than ever. Schemes that plan early and engage collaboratively with the market will be best placed to secure exceptional outcomes for their members.”