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| The
first choice for people
in pensions |
| Buy-out
market still afloat despite turmoil
By Sophie Baker |
| The
buy-out market is buoyant despite current market conditions, with
fifty-four per cent of questioned trustees still planning to opt for
a buy-out, argues MetLife Assurance Limited (MAL). The survey, which was conducted among pension trustees, found that 51 per cent of those likely to opt for buy-out said that it would occur within the next two years, and one in five said it would likely go ahead in less than 12 months. It was also discovered that scheme actuaries came out on top in terms of giving trusted advice, with 72 per cent of trustees relying most heavily on their opinion. 50 per cent relied on legal advisors, and 33 per cent employee benefits consultants. When looking for a bulk annuity provider, 68 per cent of trustees see financial strength of the insurance company as the most important attribute, and 21 per cent said competitive pricing was their most important feature. “These findings demonstrate the continued appetite for buyouts despite current financial market conditions,” commented Emma Watkins, business development manager at MetLife. “We know trustees and employers will want to ensure they are making diligent decisions at all times, and particularly so during times of market volatility. Thus, the move to buyout will have been carefully considered over a period of time.” Paul Jayson, partner at Barnett Waddingham, echoed the findings of the survey, telling Pensions Age that despite volatile pricing, a lack of guaranteed quotations and long turnaround times for quotations, “there are still opportunities out there for clients” looking at buy-outs. - Pensions Age November 2008 |