Contact

News & Insights

NEWS WRAP – 2019 Was the Year of the Bulk Pension Transfer

However, WTW says it does not believe that the rate of such transfers will continue throughout the early part of the new decade. While 2019 was a record year for pension scheme transfers, the £40 billion figure was accounted for by only 100 deals and £30 billion of this was accounted for by just 11 bulk transactions. In fact, more transfers were made in 2018, it is just that 2019 was the year in which a number of the largest schemes were transferred.

“There was pent-up demand in very large schemes going into 2019 but there is not as much demand now,” commented Ian Aley, head of the transactions team at Willis Towers Watson.

The outlook for 2020

Pension consultant Lane Clark & Peacock (LCP) predicts that 2020 will see considerable numbers of lower value transactions. However, there could be just 10 pension scheme transfers accounting for a total of £15 billion.**

The firm expects that the year will be marked by smaller bulk annuity and longevity swap transactions from the kinds of modestly sized pension schemes which struggled to get a foothold in 2019.

“We expect 2020 to see a greater mix of transactions, with fewer high-profile deals and an opportunity for smaller transactions to complete,” commented LCP partner, Myles Pink**.

The bulk annuity and longevity swap markets have proved lucrative at a time when individual annuities have lost much of their shine; Rothesay Life, Pension Insurance Corporation and Legal & General have been the major players, with Rothesay convincing its shareholders to invest £900m of capital in September*.

Furthermore, 2019 saw the record for the single largest bulk annuity deal broken more than once. In June Legal & General took on Rolls-Royce’s £4.6 billion scheme, only for Rothesay to take on the £4.7 billion GEC pension scheme in September*.

Is a personal pension transfer right for you?

Blacktower Financial Management (International) Limited can help with all aspects of expat wealth management and retirement planning, including the consideration of whether a pension transfer might be in your best interests. While you might not have much say in how your defined benefit pension scheme is managed, by talking to Blacktower you can make sure you take control of your wealth and retirement savings and understand what options might be best for your individual circumstances.

We are fully licensed and regulated and will only ever make a transactional recommendation if it is in your best interests to do so. Contact your local Blacktower Financial Management office today to discuss the possibility of a QROPS or SIPP transfer and to organise a review of your broader financial situation and portfolio asset allocation.

Disclaimer: The provision of information in this communication is not based on your individual circumstances and does not constitute investment advice. Blacktower makes no recommendation as to the suitability of any of the products or transactions mentioned.

 

* (reported in the Financial Times) https://www.ft.com/content/5247b456-2275-11ea-b8a1-584213ee7b2b Accessed 02-02-19

** https://www.lcp.uk.com/media-centre/2019/12/lcp-predicts-that-annual-volumes-of-30-billion-will-be-the-new-normal/ Accessed 02-02-19

Other News

How much should I be saving for retirement?

Retirement couple sitting on a benchMillions of employees work tirelessly for decades in the expectation of a comfortable retirement in the future. But for many UK residents retirement is an event to be feared due to lack of savings and pension. It’s important to find the balance for comfortable retirement savings.

To help you understand how much is needed, we at Blacktower Financial Management have revealed how much to save for retirement, how much you should be saving for retirement each month, and top tips that map out the best way to save for retirement.

If you plan on living out your retirement years without worrying about finances, ensuring you have sufficient retirement savings is a must.

Read More

AROUND THE BRANCHES – French Economic Growth Predicted to Slow

France flag with cracksThis time we look at what the central bank of France’s latest predictions may signal for the country’s economy and President Macron’s reactions to the latest pension protests.

Banque de France has predicted slower than expected growth of the French economy over the next 12 months as the second largest economy in the eurozone negotiates twin obstacles in the form of global uncertainty and simmering trade wars. It also comes on the back of a 5 December nationwide strike and controversy over President Emmanuel Macron’s proposed pension reforms.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.