In the future, WTW will offer its customers a pension buyout solution and will act as a full-service provider on the market. The capital market is currently favoring companies’ de-risking plans.
Current developments are presenting companies with increasing challenges with regard to their pension obligations. WTW is therefore expanding its already comprehensive offering in the area of company pension schemes and de-risking and will also be providing a pension buyout solution in the future. In order to be able to offer companies a sustainable and future-proof solution in the form of a pensioner company, WTW has initiated an independent risk carrier. WTW thus offers its customers a comprehensive full-service offering in the area of pension buyout.
The challenges for companies in relation to their pension obligations are increasing: The transformation of Germany as an industrial location requires increasingly flexible and agile corporate structures. At the same time, demographic developments mean that the level of support required for company pension schemes is increasing on the company side. Companies are therefore looking for solutions to minimize this in-house effort. Last but not least, it is becoming increasingly important for companies to focus on their core business and reduce complexity in other areas in order to remain competitive in the future. “By offering a pension buyout solution, we are responding to the different market developments and the associated changes in customer needs,” says Hanne Borst, Head of Retirement Germany at WTW. “With our decades of experience and expertise in the areas of pension de-risking, capital investment, actuarial work, M&A and administration of pension obligations, we are ideally positioned to enrich and actively shape the German pension buyout market as the first full-service provider on the market with innovative approaches.”
By offering a pension buyout solution, we are responding to the different market developments and the associated changes in customer needs.” Hanne Borst | Head of Retirement, WTW
Capital market currently favors de-risking plans
It is not just the increasing challenges that are currently making de-risking plans attractive for companies. The current capital market and interest rate situation is also currently favouring de-risking plans. “The level of funding of company pension schemes is at an all-time high. This makes it easier to implement restructuring in pension buyout solutions. Many companies have set aside sufficient financial resources. They can only use these to fund pension obligations. Accordingly, now is a good time to start planning in this direction,” says Johannes Heiniz, Senior Director Retirement at WTW.
The level of funding of company pension schemes is at an all-time high. This makes it easier to implement restructuring in pension buyout solutions.” Dr. Johannes Heiniz | Senior Director, WTW
Companies will benefit from the WTW Buyout Solution from June 2025
Companies that opt for a pension buyout solution benefit from a number of advantages. It offers the opportunity for economic, balance sheet and operational relief while at the same time potentially releasing them from legal liability. “This allows companies to significantly reduce their administrative workload and to concentrate on their core business. With investment or insurance-based capital investment options, we offer attractive solutions for small and medium-sized companies as well as large DAX companies. This is how we complete our de-risking portfolio for our customers,” says Hanne Borst. The pensioner company will be implemented under corporate law by June 2025. WTW has initiated an independent risk carrier for a secure and sustainable solution.
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