Date: November 2025
Author: Dean Wetton Advisory

Meeting the Rising Demand for Pension De-risking

The UK Defined Benefit (DB) pension risk transfer market is set for another record-breaking year. In 2024, insurers completed nearly 300 buy-in and buy-out transactions, generating over £47 billion in premiums. For 2025, industry forecasts point to £50 billion in bulk annuity deals and a further £20 billion in longevity swaps.

Looking ahead to 2026, with funding levels now more stable, trustees and sponsors are actively seeking de-risking routes-buy-ins, buy-outs and longevity swaps-to safeguard members’ benefits and secure scheme wind-up strategies. Consolidator solutions, including superfunds, are now recognised as viable, streamlined alternatives for schemes seeking operational efficiency and security.

Effective Risk Transfer Strategies for Pension Schemes

Risk transfer involves shifting pension liabilities from trustees to insurers or other financial institutions, thereby reducing the scheme’s exposure to funding and demographic risks. The most common strategies include:

  • Buy-ins – The scheme purchases an insurance policy to cover a portion or all of its liabilities. Members remain within the scheme, but the insurer guarantees the payments, providing additional security without altering benefit structures.
  • Buy-outs – All scheme liabilities are transferred to an insurer, who assumes full responsibility for paying members. This permanently removes the liabilities from the scheme and requires high-quality data and readiness.
  • Longevity swaps – The scheme exchanges variable payments linked to member lifespans for fixed payments to a counterparty, protecting against the risk that members live longer than projected.

Exploring Bulk Annuity Solutions

A bulk annuity, which often leads to a buy-out, is a contract where an insurer commits to paying the pensions of scheme members in exchange for a one-off premium. For trustees, it offers certainty of funding, streamlined administration, and robust member protection. Securing competitive terms requires detailed preparation, including accurate member data, a clear understanding of the scheme’s liability profile and effective engagement with multiple insurers to identify the best fit.

The Role of Consolidator Advice in Pension Scheme Management

Consolidator advice helps trustees explore the possibility of transferring their scheme to a defined benefit consolidator or superfund, which can deliver economies of scale, reduced costs, and simplified governance. UK consolidators (such as Clara Pensions) have gained prominence, planning to invest significantly in diversified portfolios to support transferred schemes. For schemes that cannot yet afford a buy-out, consolidators can provide an attractive middle path-offering strong member security without the full cost of insurance.

DWA’s Distinctive Client-First Advisory Approach

Dean Wetton Advisory operates on a highly independent, boutique consultancy model. Free from insurer influence, our advice is aligned entirely with trustee and sponsor priorities. This independence ensures that strategic planning for bulk annuity or consolidator transactions is based solely on the client’s objectives, enabling better value, greater transparency, and tailored solutions for schemes of all sizes.

Leveraging Expertise in Private Market Assets

Many schemes hold illiquid assets-such as private equity, infrastructure, or private debt that can complicate risk transfer. DWA brings deep expertise in valuing, managing, and exiting these assets in a way that preserves value, avoids distressed sales, and keeps transaction timelines on track. This capability broadens the range of de-risking options available to clients while protecting member outcomes.

Ensuring Smooth Transitions with Post-Buy-In Project Management

Completing a buy-in or buy-out is not the end of the journey. Effective post-transaction project management is essential to ensure the benefits are delivered as intended. DWA provides end-to-end support, from aligning governance processes and coordinating operational changes to crafting clear member communications and ensuring full regulatory compliance. This approach minimises disruption and helps trustees maintain confidence throughout the transition.

Why Trustees Should Partner with DWA

As we enter 2026 with sustained momentum, trustees need an adviser with both market expertise and execution capability. Partnering with DWA gives schemes independent strategic guidance, private asset fluency, and operational certainty from initial planning to post-deal delivery. For trustees committed to achieving strong, fair, and sustainable outcomes, DWA is more than an adviser-it is a trusted partner in navigating the Defined Benefit (DB) endgame.