WTW forecasts £65bn of pension de-risking transactions in 2022

20 January 2022

This year is set to be the biggest on record for pension scheme de-risking, with £65bn of bulk annuity and longevity swap transactions anticipated to complete, according to WTW’s (Willis Towers Watson’s) annual De-risking report. Bulk annuity transactions – also known as buy-ins and buyouts – will make up £40bn of the anticipated total, while longevity swaps are expected to complete the remaining £25bn.

According to recent WTW research, one in three (30%) pension schemes anticipate de-risking their liabilities in the next three years, and 2022 is likely to be a peak year due to a combination of competitive market pricing, pent-up demand from the pandemic and competition between insurers and reinsurers seeking to fill their expanded targets.

Source: WTW