Why consider a Bulk Purchase Annuity?
Bulk Annuity solutions help Defined Benefit pension schemes to de-risk. It's essentially an insurance policy that helps secure members’ benefits by removing risks to the scheme, such as:
- Investment underperformance
- Members living longer than expected
- Interest rate changes and inflation
Our Bulk Annuity solutions
There are two main solutions for Defined Benefit schemes – "Buy-in" or "Buy-out" policies, and we offer both.
The main difference between the two options is that a "Buy-in" covers a proportion of the pension scheme’s liabilities and is held as an asset of the scheme. This means the pension scheme continues to make pension payments directly to members. While with the "Buy-out" option, an insurance policy is issued to each pension scheme member individually, which enables the scheme to wind up.