Following the Work and Pensions Select Committee: Defined Benefit Pensions Schemes report which was published last year, the Government has outlined the action it will take on its recommendations to improve the DB pensions landscape.
In response, Hetty Ahern, Head of Long-Term Saving Policy at the ABI, said:
The Government’s response to the Work and Pensions Select Committee rightly highlights that DB schemes’ funding is now in a much better place, with TPR this week estimating that over half of schemes are now funded on a buyout basis.
While this improvement in funding is welcome, it could change in future. Therefore trustees will still need to carefully consider the long-term future of their scheme and the best interests of their scheme members. The insurance market is well-placed and well-positioned to play a key role in securing peoples’ pensions through buy-ins or a full scheme buyout, whilst also providing peace of mind to sponsoring employers.
UK annuity providers are also some of the biggest investors at home, with our research finding nearly two thirds of their assets invested in the UK. The buyout market is therefore a key player in the Government’s growth agenda.