Skip to main content
What can we help you find?
main content, press tab to continue
Article

Irish bulk annuity market projected to exceed €1bn in 2023

By Brian Mulcair | March 21, 2023

Rising bond yields have resulted in some schemes seeing an improvement in funding levels to the extent that annuity settlement is now within reach much earlier than anticipated.
N/A
N/A

The bulk annuity market grew rapidly in 2022 with completed transaction volume over the year more than five times higher than in 2021.

Rising bond yields have resulted in many defined benefit (DB) schemes seeing an improvement in funding levels to the extent that annuity settlement is now within reach much earlier than anticipated. This de-risking opportunity was a key factor driving the increase in the number of transactions in 2022 and this trend is expected to continue with the market projected by some providers to exceed €1bn in 2023.

WTW is proud to be at the heart of this market. In 2022, we supported trustees and corporates across all scheme sizes in navigating the market and achieving de-risking goals. In fact, we advised clients on transactions valued at €270m – over 55% of the total market. And with more schemes than ever planning to approach the market in 2023, WTW is expecting to support many clients in completing bulk annuity transactions this year.

For more information

You can find out more about WTW’s Pension Settlement Service here

If you would like to discuss these issues in more detail please contact your WTW consultant or a member of our Corporate Consulting Team

Download

Title File Type File Size
Pension Liability Settlement PDF .8 MB

Author

Brian Mulcair
Head of Corporate Consulting
email Email phone +353 1 614 6885
Related content tags, list of links Article

Related Capabilities

Corporate Pensions Consulting
Pensions Risk Solutions
Pensions Technology
Wealth Management
Pension Fund Management Software

Related Services

Settlement Solutions

Willis Towers Watson’s specialist Transactions team has unrivalled experience of working with clients who are looking to purchase bulk annuities. It’s a busy market and we have been at the forefront, driving innovation for large and small transactions.
Pension Funding

We are living in uncertain economic times. Companies are rightly making the prudent financial management of their pension arrangements a focus. WTW offers creative solutions to well-trodden pensions funding problems. We advise on a multitude of funding issues and keep you apprised of all the latest regulatory developments.
Liability Management

We focus on the delivery of high quality, best practice pensions liability management programmes aimed at employers and trustees who understand the risks associated with such exercises.
Retirement Transfer Option

We help our clients put in place an effective process to offer a transfer option to members on retirement. This offers the members additional options on retirement and can also help the company and trustees reduce cost and risk in the pension scheme.
Enhanced Transfer Values

We work with our clients to implement best practice Enhanced Transfer Value projects. This offers the deferred members the option to transfer out of the pension scheme at a level which is above the standard transfer terms and can also help the company and trustees reduce cost and risk in the pension scheme.
Pensions Data Solutions

We help our clients identify shortfalls in their electronic member data, resolve their data issues and achieve their business needs and objectives.
Pension Increase Exchange

We work with our clients to implement best practice Pension Increase Exchange projects. This offers the pensioners the option to receive a once-off uplift to their pension in lieu of future pension increases. This is an attractive option for pensioners, reduces the risk to the pension scheme and ultimately makes it easier to purchase annuities to match the pension benefit.
Discretionary Pension Increase Policy Setting

Our actuarial consultants can assist company and Trustee boards develop discretionary pension increase policies that are responsive to changing financial conditions and deliver fair, sustainable and equitable discretionary increase awards over time.
Contact us