PensionsApr 8 2024

What’s the difference between a pension buy-in and buyout?

  • Explain the impact of higher gilts yields on pension scheme funding levels
  • Explain the features within a pension buy-in and buyout policy
  • Explain how a pension scheme prepares for an insurance transaction
  • Explain the impact of higher gilts yields on pension scheme funding levels
  • Explain the features within a pension buy-in and buyout policy
  • Explain how a pension scheme prepares for an insurance transaction
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Approx.30min
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Approx.30min
What’s the difference between a pension buy-in and buyout?
(LightFieldStudios/Envato Elements)

Up until recently, solvency funding positions of a vast number of UK defined benefit pension schemes were estimated to be in deficit, meaning that the value of the assets held was expected to be insufficient to cover the cost of insuring the benefits of the pension scheme with a UK life insurer.

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