Bulk annuity policies help to remove financial and demographic risks faced by a defined benefit pension scheme. By providing payments to a scheme that match all, or a proportion of, the scheme's benefits, our bulk annuity policies can provide increased financial security to schemes and their members.
As a purpose-driven mutual, we have a keen focus on looking after the interests of your pension scheme’s members. We remain committed to playing our part in moving fairly to a sustainable world and helping build financial resilience.
We know a key consideration when choosing a bulk annuity provider is their financial strength. We're the UK's largest mutual life, pensions and investment company1 and our financial strength means that we can offer firm foundations of financial security. We’re a long-term business for long-term promises and our commitment to the bulk annuity market is no different.
1 Based on total 2022 premium income. ICMIF Global 500, 2024
Why choose Royal London for a bulk annuity policy
-
We are a purpose-driven mutual. Our Purpose - 'Protecting today, investing in tomorrow. Together we are mutually responsible' - drives everything that we do.
-
Our mutuality allows us to take a longer-term view, ensuring we're well placed to act and invest responsibly in the interests of our members, customers and wider society.
-
We’re focused on providing an excellent standard of service to pension scheme trustees and their advisers. Your dedicated implementation manager will ensure that your bulk annuity policy runs smoothly from day one.
-
With £169 billion of assets under management2 and a robust solvency position, we're here to offer your members financial security and stability.
2 As at 30 June 2024
Bulk annuities: at a glance
A bulk annuity – sometimes known as a bulk purchase annuity – is an insurance policy which passes the primary risks of running a defined benefit pensions scheme to an insurer. The first step is purchasing a ‘buy-in’ policy, before then transitioning to ‘buyout’.
Buy-in
A buy-in is an insurance policy purchased by the trustees of a defined benefit pension scheme and held as an asset of the pension scheme. It is designed to match the pension payments payable to the pension scheme members, with the scheme remaining responsible for paying those pensions onwards to members.
The buy-in policy helps to remove the pension scheme’s exposure to financial and demographic risks.
Buyout
A buyout goes one step further. When a buy-in policy is converted to a buyout, Royal London assumes full responsibility for paying the insured pensions directly to pension scheme members, allowing the trustees and employer to wind-up the pension scheme.