What is the outlook for the pension risk transfer market in 2026?

The outlook for schemes seeking to insure in 2026 is positive – well-prepared and well-advised schemes will be able to achieve attractive pricing and benefit from innovation in key areas such as member experience.

What is driving strong demand for buy-ins and buy-outs?

Buy-out funding levels have improved, with 45% of schemes now estimated to be fully funded on buy-out – expected to increase to 80% of schemes within five years. While endgame innovation continues apace, demand for the insurance route remains undiminished – as demonstrated by the £4.3bn buy-in completed by Rolls-Royce scheme this summer.

A pension buy-in is an investment where a pension scheme purchases an insurance policy to cover the benefits payable to some or all of its members. This means that the insurer takes on the responsibility for paying the pensions of those members to the scheme, effectively transferring the risk from the pension scheme to the insurer. The scheme retains the legal responsibility for paying the pensions, but the insurer is responsible for funding the scheme so the payments can be made. The scheme transfers assets to the insurer to the meet the buy-in price.

A pension buy-out involves a pension scheme assigning an insurance policy into the names of the members or other beneficiaries of the scheme. A buy-in is a necessary first step before a buy-out. The buy-out transfers legal responsibility for paying the members from the pension scheme to the insurer. Pensions are then paid directly to members by the insurer rather than by the scheme, and the buy-in ceases to be an asset of the scheme. This process is used to transfer all or part of the liabilities of a scheme to an insurer and is often associated with the winding up of the scheme. It is not normally necessary to make any additional payment to the insurer to move to buy-out.

Pension risk transfer report

Pensions & benefits Pension risk transfer Endgame strategy and journey planning DB pensions Strategic journey planning Risk

Insurers up their game amidst a changing landscape

Our 2025 report reveals a strong outlook for defined benefit schemes seeking to insure, with buy-in pricing expected to remain fiercely competitive over 2026 and schemes benefiting from innovation in key areas such as member experience.

Our report examines how schemes can successfully navigate these market dynamics, design and implement optimal endgame strategies to the benefit of trustees, members and scheme sponsors.

Explore key issues in the buy-in and buy-out market

Endgame strategy – the emerging range of endgame options and alternative strategies available.
Insurance supply and demand – the factors driving buy-in/out demand with £350bn to £550bn of buy-ins projected over the next decade, and expanding insurer capacity reaching record levels.
Pricing dynamics – the factors that are creating fierce competition and the innovation that will drive continued attractive buy-in pricing over 2026.
Insurer innovation – the increased focus by insurers on member experience and navigating the post-transaction journey, as the number of schemes transitioning from buy-in to buy-out rises sharply.

Explore the pension risk transfer report

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Pensions & benefits Pension risk transfer Endgame strategy and journey planning Post-transaction and wind-up support

Insurers up their game amidst a changing landscape – how can your scheme benefit?

02 December 2025

Delve into the latest pension risk transfer trends and opportunities in our webinar.

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Read previous editions of our pension risk transfer report

2024: Reaching cruising altitude

2023: A seismic shift in buy-ins/outs: how is the market adapting?

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Your questions answered

: The outlook for schemes seeking to insure in 2026 is positive – well-prepared and well-advised schemes will be able to achieve attractive pricing and benefit from innovation in key areas such as member experience.

: Buy-out funding levels have improved, with 45% of schemes now estimated to be fully funded on buy-out – expected to increase to 80% of schemes within five years. While endgame innovation continues apace, demand for the insurance route remains undiminished – as demonstrated by the £4.3bn buy-in completed by Rolls-Royce scheme this summer.

: A pension buy-in is an investment where a pension scheme purchases an insurance policy to cover the benefits payable to some or all of its members. This means that the insurer takes on the responsibility for paying the pensions of those members to the scheme, effectively transferring the risk from the pension scheme to the insurer. The scheme retains the legal responsibility for paying the pensions, but the insurer is responsible for funding the scheme so the payments can be made. The scheme transfers assets to the insurer to the meet the buy-in price.

: A pension buy-out involves a pension scheme assigning an insurance policy into the names of the members or other beneficiaries of the scheme. A buy-in is a necessary first step before a buy-out. The buy-out transfers legal responsibility for paying the members from the pension scheme to the insurer. Pensions are then paid directly to members by the insurer rather than by the scheme, and the buy-in ceases to be an asset of the scheme. This process is used to transfer all or part of the liabilities of a scheme to an insurer and is often associated with the winding up of the scheme. It is not normally necessary to make any additional payment to the insurer to move to buy-out.