Twenty years of the buy-in: over £400 billion transferred to insurers

This month marks the 20th anniversary of the modern buy-in. In that time, over £400 billion of assets have been transferred from UK defined benefit (DB) schemes to insurers to purchase buy-ins, according to LCP analysis. To put that scale in context, UK DB schemes currently hold around £1,100 billion of assets.

The modern buy-in transformed the UK DB pension landscape by introducing specific provisions that distinguished it from earlier bulk annuity transactions.  These allowed schemes to treat the buy-in as an investment for the benefit of all members, without requiring an immediate buy-out. LCP helped design and execute the first modern buy-in 20 years ago.

Looking ahead, LCP says that a widening range of endgame options means the next twenty years could look very different from the last for the pension risk transfer market. Trustees and sponsors face important choices about whether to pursue an insurance strategy through buy-ins, transfer to a superfund, develop a long-term run-on strategy or explore other emerging solutions. These choices have implications not only for members, but also for sponsoring employers and the wider UK economy.

To mark the 20-year milestone of the first modern buy-in, LCP has launched a collection of insights exploring the buy-in market, the choices facing schemes today and what comes next, drawing on LCP’s experience of advising on over 300 transactions.

LCP believes policymakers, regulators and the industry should support the development of a range of credible endgame options, recognising that different approaches will suit different schemes, building on the success of the buy-in market. The incoming superfund framework and the introduction of the surplus release rules in 2027 to support run-on strategies provide important opportunities to establish robust endgame options.

LCP has identified three key priorities:

1. Provide clear frameworks for different endgame options
   Clear, stable and proportionate frameworks should support insurance, superfunds, run-on strategies and future innovations, giving trustees confidence to make long-term decisions while maintaining appropriate protections for members.
2. Sustain competition, capacity and access Healthy competition, capital investment and continued innovation will be essential to maintaining an effective market. The regulatory framework should support access for schemes of all sizes and encourage external investment in developing and delivering attractive endgame offerings.
3. Deliver benefits for members, sponsors and the wider economy Endgame decisions should reflect each scheme’s circumstances, with appropriate protections for members at their core, and should consider the potential benefits of different options for members, sponsoring employers and the wider UK economy.

Charlie Finch, Partner in LCP’s Pension Risk Transfer team, said: “The modern buy-in has transformed the UK DB pension landscape since its introduction 20 years ago.  The next chapter should build on that success and support a range of credible and successful endgame options.

“Buy-ins will remain the right solution for many schemes but the wider range of endgame options that now exists means trustees and sponsors have important choices.  This needs to be supported by clear, proportionate regulatory frameworks that enable the development of commercially viable propositions and continued innovation while maintaining appropriate safeguards for members.”

Notes to editors:

• Data supplied by the insurers in the buy-in market shows £385bn of buy-ins have been completed with UK pension schemes in the period between 2007 and 30 June 2026.  LCP estimates that total buy-in volumes over the past twenty years exceed £400bn taking into account further buy-ins since 30 June 2026.
• As at 30 September 2026, the PPF 7,800 Index shows £1,082bn of total scheme assets across 4,838 PPF-eligible defined benefit schemes.