Report: Ensuring a smooth de-risking journey

Looking at the key themes in the longevity hedging and bulk annuity market over the next year, this Willis Towers Watson report looks ahead to 2018 to help schemes ensure a smooth de-risking journey on a potentially bumpy road.

Key findings:

• 2017 was a busy year in the bulk annuity market, with volumes in the first half of the year significantly higher than over the same period in 2016.
• Being able to accurately monitor the funding position will become more important as pension schemes approach fully-funded status and move to lock in gains as they emerge and avoid overfunding.
• With the end-of-year rush firmly established as a feature of this market, Willis Towers Watson expect 2018 to set a new record for bulk annuity business.

The report: outlines the tactics used in 2017 to help schemes get the best possible value in the bulk annuity market; considers how buyout maybe more affordable than previously thought; offers a comparison of the two main end-game options for pension schemes – in-scheme run-off vs buyout with an insurer; and discusses the considerations schemes need to make when deciding whether a buy-in should be collateralised.