Pension funds heading for buyout deals

Forecasts from Legal & General predict assets worth up to £10bn could be transferred this year, beginning with a £1bn deal within the year.

Simon Gadd, managing director for L&G’s annuities business, told the Daily Telegraph the buyout market had never been busier: ‘There's probably £20bn worth of buyouts by value being tendered for at the moment,’ he said.

He said bigger deals were coming to the market and the first £1bn deal could happen this year, as more than half a dozen schemes were at present looking at their options.

‘Finance directors are looking at buyout options as regulation, longevity, accounting rules and investment volatility have pushed pension costs and risks up their agenda,’ Gadd said.

Further reading:

Pensions special: Steer the right course

Pensions special: Share the burden

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