We monitor general pricing trends in bulk pension annuity transactions to help your organization understand how to potentially reduce pension risk across multiple countries.
As defined benefit pension plans mature, many employers look to the insurance market to potentially secure their members’ retirement incomes in perpetuity.
If positioning your plan for an insurance transaction, it is important to understand how pricing works. The cost of insuring a defined benefit pension fund is subject to movements in global financial markets and the individual requirements for the insurer that is taking on the liabilities.
In addition, country-specific pricing often trends in different directions due to domestic influences, potentially leading to windows of opportunity in one country relative to another.
We use up-to-date pricing information from each country to estimate the cost of insuring a sample plan’s current retirees as a percentage of the equivalent estimated accounting liability.
Global Pension Buyout Index
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