Bulk Annuity

Pensions  ·  4 min read

Buyout Readiness: The Premium Difference Between Prepared and Unprepared Schemes

A bulk annuity transaction is the most consequential financial event in most Defined Benefit schemes' histories. The premium difference between a well-prepared and a poorly-prepared scheme at transaction ranges from 0.5 to 2 percent of liabilities. On a £500 million scheme, that is £2.5 to £10 million. Most of that difference is attributable to data quality.